A "Factor" in APT Is a Variable That

question 57

Multiple Choice

A "factor" in APT is a variable that:

• A) is pure "noise"
• B) correlates with risky asset returns in an unsystematic manner
• C) affects the return of risky assets in a systematic manner
• D) affects the return of a risky asset in a random manner

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Definitions:

God of War

A popular video game series based on ancient mythology, where players primarily assume the role of Kratos, a Spartan warrior in a world of Greek gods and monsters.

Quetzalcoatl

Quetzalcoatl is a Mesoamerican deity whose name comes from the Nahuatl language and means "Feathered Serpent." The deity was known for his association with creation, fertility, and the wind.

Mictlantecuhtli

The Aztec god of the dead and the underworld, ruling over the souls of the deceased and presiding over festivals of the dead.

Borgia Codex

A pre-Columbian Mesoamerican manuscript that records historical, religious, and astronomical information, associated with the Borgia Group.