Consider the Following List of Risk Factors

question 12

Multiple Choice

Consider the following list of risk factors:
(1) monthly growth in industrial production
(2) return on high book to market value portfolio minus return on low book to market value portfolio
(3) change in inflation
(4) excess return on stock market portfolio
(5) return on small cap portfolio minus return on big cap portfolio
(6) unanticipated change in bond credit spread
Which of the following factors would you use to develop a microeconomic-based risk factor model?

• A) (1), (2), and (3).
• B) (1), (3), and (5).
• C) (2), (4), and (5).
• D) (1), (3), and (6).
• E) (4), (5), and (6).

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Definitions:

Articular Cartilage

Hyaline cartilage covering the ends of bones within a synovial joint.

Lubricating Film

A thin layer of liquid or semi-liquid substance applied to surfaces to reduce friction and wear.

Double Layer

A double layer often refers to structures composed of two levels of material, which in biological contexts, could imply the phospholipid bilayer of cell membranes or protective coatings.

Joint Surface

The part of a bone that articulates with another bone, usually covered with cartilage to enable smooth movements.