Consider the One-Factor APT

question 32

Multiple Choice

Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 14%. The standard deviation on the factor portfolio is 10%. The beta of the well-diversified portfolio is approximately

• A) 0.80.
• B) 1.40.
• C) 1.65.
• D) 1.82.

---

Definitions:

Onset Of Illness

The initial stage or beginning symptoms of a disease or health condition.

Koplik Spots

Small, white lesions that appear on the inside of the mouth, typically a sign of measles infection.

Measles

A highly contagious viral infection known for its distinctive red rash, fever, and respiratory symptoms.

Rubella

A contagious viral infection best known for its distinctive red rash, also known as German measles; it's particularly dangerous to pregnant women due to the risk of congenital rubella syndrome.