A Factor Is a Variable That

question 33

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 a systematic fashion.
• E) None of these.

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Definitions:

Hypertension

A medical condition characterized by consistently elevated blood pressure levels.

Creative

A trait relating to the ability to produce new and original ideas, approaches, and solutions.

Curious

Having a strong desire to know or learn something.

Laser Eye Surgery

A medical procedure that uses lasers to correct vision problems, such as myopia, hyperopia, and astigmatism.