Consider the Single Factor APT

question 62

Multiple Choice

Consider the single factor APT.Portfolios A and B have expected returns of 14% and 18%,respectively.The risk-free rate of return is 7%.Portfolio A has a beta of 0.7.If arbitrage opportunities are ruled out,portfolio B must have a beta of __________.

• A) 0.45
• B) 1.00
• C) 1.10
• D) 1.22
• E) none of these

Analyze the role and impact of trade agreements and transnational trade groups on global business.

Understand and differentiate between legal and illegal global market behaviors.

Explain the practice of dumping and its implications on international trade.

Grasp the significance of ethical business practices in global markets.

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Definitions:

Independent Survey

A research study conducted by an organization or individual not affiliated with the subjects being surveyed to ensure unbiased results.

Department Manager

An individual who is in charge of a specific department within a company, overseeing its operations, budget, and staff.

Human Resources

The department within an organization that is responsible for managing employment-related functions such as hiring, training, benefits, and compliance with labor laws.

Pay Scales

Pay scales refer to the structured system that determines the salary range for different positions or levels of responsibility within an organization.