Cho,Elton,and Gruber Tested the APT by Examining the Number of Factors

question 36

Multiple Choice

Cho,Elton,and Gruber tested the APT by examining the number of factors in the return generating process and found that

• A) Five factors were required using Roll-Ross procedures.
• B) Six factors were present when using historical beta.
• C) Fundamental betas indicated a need for three factors.
• D) All of the above.
• E) None of the above.

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Definitions:

Abraham Lincoln

The 16th President of the United States, who served from 1861 until his assassination in 1865, known for leading the country during the Civil War and abolishing slavery.

Reentry Into Politics

The act of an individual who has previously been involved in political activities or held political office returning to active political life or seeking elective office again.

Kansas-Nebraska Act

A 1854 law that created the territories of Kansas and Nebraska and allowed their residents to decide whether to allow slavery, leading to violence and political turmoil.

Confederate Constitution

The constitution adopted by the Confederate States of America in 1861, which outlined the legal framework of the Confederacy during the American Civil War.