Exhibit 9.1 Use the Information Below for the Following Problem(S)

question 33

Multiple Choice

Exhibit 9.1
Use the Information Below for the Following Problem(S)
(1) Capital markets are perfectly competitive.
(2) Quadratic utility function.
(3) Investors prefer more wealth to less wealth with certainty.
(4) Normally distributed security returns.
(5) Representation as a K factor model.
(6) A market portfolio that is mean-variance efficient.
-Refer to Exhibit 9.1.In the list above,which are not assumptions of the Arbitrage Pricing model?

• A) (1) and (3)
• B) (1), (2), and (3)
• C) (1), (2), and (5)
• D) (2), (4), and (6)
• E) All six are assumptions

---

Definitions:

Moles

In dermatology, a common type of skin growth; in chemistry, a unit measuring the amount of substance.

Warts

Small, rough growths on the skin caused by the human papillomavirus (HPV), typically harmless and self-limiting.

Acne

A skin condition that occurs when your hair follicles become plugged with oil and dead skin cells.

Turgor

Normal tension; with the skin, it means the resistance to being deformed and the length of time to return to normal.