A Factor Is a Variable That

question 31

Multiple Choice

A factor is a variable that:

• A) affects the returns of risky assets in a systematic fashion.
• B) affects the returns of risky assets in an unsystematic fashion.
• C) correlates with risky asset returns in a unsystematic fashion.
• D) does not correlate with the returns of risky assets in an systematic fashion.

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Definitions:

Decision-making Strategy

A systematic approach or methodology employed to make choices among various alternatives to achieve a goal.

Dominant Speaker

An individual in a conversation or group who takes the lead in speaking, often influencing the direction or outcome of the discussion.

Meeting Purposes

The objectives or goals that a meeting aims to achieve, which guide its agenda and discussions.

Face-to-face Meetings

In-person gatherings or conferences where participants engage in direct interaction, allowing for immediate feedback and non-verbal communication cues.