Consider the Following List of Risk Factors: (1)

question 48

Multiple Choice

Consider the following list of risk factors: (1)
Monthly growth in industrial production
(2)
Return on high book to market value portfolio minus return on low book to market value portfolio
(3)
Change in inflation
(4)
Excess return on stock market portfolio
(5)
Return on small cap portfolio minus return on big cap portfolio
(6)
Unanticipated change in bond credit spread
Which of the following factors would you use to develop a macroeconomic-based risk factor model?

• A)(1), (2), and (3).
• B)(1), (3), and (5).
• C)(2), (4), and (5).
• D)(1), (3), and (6).
• E)(4), (5), and (6).

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Definitions:

Myomalacia

Softening of the muscle tissue.

Softening

The process of making something softer or less rigid, often through the addition of moisturizers or water.

Muscle Tissue

A body tissue composed of fibers capable of contracting to effect bodily movement.

Excitability

The ability of a cell or organism to respond to external stimuli and generate a response.