In Developing the APT,Ross Assumed That Uncertainty in Asset Returns

question 54

Multiple Choice

In developing the APT,Ross assumed that uncertainty in asset returns was a result of

• A) a common macroeconomic factor
• B) firm-specific factors
• C) pricing error
• D) neither a nor b
• E) both a and b

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Definitions:

Rescind

To revoke, cancel, or repeal a contract, offer, or agreement.

Unilateral Mistake

A misconception or error made by one party in a contract that does not affect the contract's overall validity unless the other party was aware of the mistake and took advantage of it.

Georgia Law

The body of statutory and common law originating from the state of Georgia, governing legal issues within its jurisdiction.

Rescind A Contract

The legal act of revoking, canceling, or annulling a contract, returning the parties to their positions prior to the agreement.