Exhibit 92
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider

question 13

Multiple Choice

Exhibit 9.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas) . $$\begin{array} { c c c } \text { Stock } & \text { Factor 1 Loading } & \text { Factor 2 Loading } \\\hline \mathrm { X } & - 0.55 & 1.2 \\\mathrm { Y } & - 0.10 & 0.85 \\\mathrm { Z } & 0.35 & 0.5\end{array}$$ The zero-beta return ( $\lambda$ ₀) = 3%, and the risk premia are $\lambda$ ₁ = 10%, $\lambda$ ₂ = 8%. Assume that all three stocks are currently priced at $50.
-Refer to Exhibit 9.2. Assume that you wish to create a portfolio with no net wealth invested. The portfolio that achieves this has 50% in stock X, -100% in stock Y, and 50% in stock Z. The weighted exposure to risk factor 2 for stocks X, Y, and Z are

• A)0.50, -1.0, 0.50
• B)-0.50, 1.0, -0.50
• C)0.60, -0.85, 0.25
• D)-0.275, 0.10, 0.175
• E)None of the above.

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Definitions:

Job Satisfaction

The level of contentment employees feel about their job, which can include aspects such as work environment, job duties, and compensation.

Job Withdrawal

The process by which an employee disengages from their work role, which may manifest as absenteeism, reduced effort, or eventually leaving the job.

Emotional Withdrawal

A defense mechanism where an individual distances themselves emotionally from others or certain situations.

Physical Job Withdrawal

Actions taken by employees to distance themselves from their work tasks, often as a result of dissatisfaction or disengagement, such as taking extended breaks or excessive absenteeism.