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.

Identify and differentiate between diagrams of arguments and explanations based on structure.

Understand that a single hypothesis can explain multiple explananda.

Recognize the terminologies used in explanations, such as explanandum and hypothesis.

Evaluate the adequacy of hypotheses in explanations.

---

Definitions:

Neuroscience Perspective

A view that focuses on understanding the neural processes that occur during social judgment and behavior. Neuroscience involves assessments of brain waves, brain imaging, and cardiovascular functioning.

Cultural Perspective

A view that focuses on the influence of culture on thought, feeling, and behavior.

World War II

A global military conflict that took place between 1939 and 1945, involving most of the world's nations and marked by significant events and severe human and economic losses.

Economic Crisis

A situation in which a country's economy experiences a sudden downturn brought on by a financial panic or an external shock, leading to a severe drop in consumer wealth and confidence and financial instability.