Exhibit 9.1 Use the Information Below for the Following Problem(S)

question 44

Multiple Choice

Exhibit 9.1
Use the Information Below for the Following Problem(S)
(1) Capital markets are perfectly competitive.
(2) Quadratic utility function.
(3) Investors prefer more wealth to less wealth with certainty.
(4) Normally distributed security returns.
(5) Representation as a K factor model.
(6) A market portfolio that is mean-variance efficient.
-Refer to Exhibit 9.1.In the list above which are assumptions of the Arbitrage Pricing Model?

• A) (1) and (4)
• B) (1), (2), and (3)
• C) (1), (3), and (5)
• D) (2), (3), (4), and (6)
• E) All six are assumptions

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Definitions:

Real Time

The ability to process or respond to inputs almost instantaneously or within a very short timeframe, crucial in systems requiring immediate feedback or control.

Text-Based

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Tag

A label or identifier that is assigned to data, which makes it easier to manage, search, and manipulate within software applications.

Tag-Based Addressing

Tag-based addressing uses descriptive names (tags) for addressing instead of traditional physical or memory addresses, simplifying programming and system configuration.