Consider the One-Factor APT

question 69

Multiple Choice

Consider the one-factor APT. The variance of the return on the factor portfolio is .08. The beta of a well-diversified portfolio on the factor is 1.2. The variance of the return on the well-diversified portfolio is approximately ________.

• A) .1152
• B) .1270
• C) .1521
• D) .1342

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Definitions:

Sound Quality

The measure of how pleasing or accurate an audio output is from any given source.

Pitch

The quality of a sound governed by the rate of vibrations producing it; the degree of highness or lowness of a tone.

Signal Received

In communication and signal processing, this refers to the successful reception of a transmitted message or signal by an intended receiver.

Sound Localization

The ability to determine the origin of a sound source in space.