In a Summated Rating Scale,the Respondent

question 43

Multiple Choice

In a summated rating scale,the respondent:

• A) replies Yes or No to a number of questions
• B) agrees or disagrees to a number of statements
• C) receives a number according to correct responding
• D) is free to respond in any way to a question

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Definitions:

Factor Loadings

Quantitative measures of how much a factor affects a given variable, often used in factor analysis to assess investment performance.

Multifactor APT

Multifactor APT, or Arbitrage Pricing Theory, is a model that describes the expected return on a financial asset as a linear function of various macroeconomic factors or theoretical market indexes.

Macro Factors

Economic variables that affect a wide range of assets and securities including inflation, interest rates, economic growth, and political stability.

Factor Portfolio

A portfolio constructed to have a high sensitivity to a specific factor or factors, used to capture returns associated with those factors.