Which of the Following Is Not a Characteristic of the Risk

question 61

Multiple Choice

Which of the following is not a characteristic of the risk factors in the APT?

• A) The factors must be readily observable in risk/return space.
• B) Each factor must have a pervasive influence on stock returns.
• C) The factors must influence expected return.
• D) Factors must be unpredictable.

---

Definitions:

Psychology Ph.D.s

Advanced degree focusing on the study of the mind and behavior, awarded after several years of postgraduate study.

Sodium Salts

Compounds that result from the replacement of the hydrogen ion of an acid with a sodium ion.

Body Damage

Physical harm that impairs the function or structure of a part of the body.

Machinery Operation

The process or action of working with mechanical devices to perform a specific task or function.