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:

Uninterpretable Nonequivalent Groups Designs

Research designs that lack clear control groups or equivalency between groups, making findings difficult to interpret accurately.

Pretest-Posttest Nonequivalent Groups Design

A quasi-experimental research design where one group is tested before and after an intervention and compared to a control group not receiving the intervention.

Interpretable Nonequivalent Groups Design

A research design involving comparison between groups that are not randomly assigned but are compared on outcomes to assess treatment effects.

History

A field of study concerned with the analysis and interpretation of past events.