Which of the Following Is Not a Characteristic of the Risk

question 61

Multiple Choice

Which of the following is not a characteristic of the risk factors in the APT?

• A) The factors must be readily observable in risk/return space.
• B) Each factor must have a pervasive influence on stock returns.
• C) The factors must influence expected return.
• D) Factors must be unpredictable.

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Definitions:

Condominiums

A form of living space similar to apartments, but individually owned within a complex where common areas and facilities are shared among residents.

Sacajawea

A Lemhi Shoshone woman who assisted the Lewis and Clark Expedition, serving as an interpreter and guide in the early 1800s.

Lewis and Clark

Two explorers, Meriwether Lewis and William Clark, who led an expedition from 1804 to 1806 across the Western United States to explore lands acquired in the Louisiana Purchase.

Shoshone Indian

A member of a Native American tribe originally located in the western United States, known for their hunter-gatherer culture.