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:

Holocaust

The systematic mass slaughter of six million Jews and millions of others by the Nazis during World War II.

Imprinting

A rapid, innate learning process within a critical period that involves attachment and identification of offspring with their parent or an object.

Egocentrism

A cognitive bias where individuals overemphasize their own perspective and importance in relation to others.

Abusive Parents

Caregivers who engage in actions or inactions that harm or risk harming their children, physically, emotionally, or psychologically.