An Investor Is Using the APT to Calculate Expected Returns

question 4

Essay

An investor is using the APT to calculate expected returns and make investment decisions.He has three years of data.The investor runs into a finance professor who offers to supply him with an additional three years of data free of charge.Why should the investor accept the offer?

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Definitions:

String Data Type

A data type used in various programming languages to store sequences of characters representing text.

Called Function

A function that is invoked or executed by another function or piece of code, typically passing control from the caller to the called function.

Calling Function

The process where one function invokes or makes use of another function within a program.

Function Prototype

A declaration of a function that specifies the function's name, return type, and parameters, used to inform the compiler about a function ahead of its definition.