Consider the One-Factor APT

question 87

Multiple Choice

Consider the one-factor APT.The variance of returns on the factor portfolio is 6%.The beta of a well-diversified portfolio on the factor is 1.1.The variance of returns on the well-diversified portfolio is approximately __________.

• A) 3.6%
• B) 6.0%
• C) 7.3%
• D) 10.1%
• E) none of these

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Definitions:

Lifestream Data

Digital information streams generated by the activities of individuals on various platforms, capturing the essence of their daily lives and interactions.

Profile Data

Information related to the characteristics, preferences, or behaviors of an individual or entity, often collected and used for targeting or personalization.

Handle Squatting

The act of registering and holding onto a social media username with the intent of selling it or preventing its use by others.

Lifestreaming

The practice of sharing aspects of one's daily life through digital platforms, typically involving continuous live broadcasts or postings.