The Factor F in the APT Model Represents

question 49

Multiple Choice

The factor F in the APT model represents

• A) firm-specific risk.
• B) the sensitivity of the firm to that factor.
• C) a factor that affects all security returns.
• D) the deviation from its expected value of a factor that affects all security returns.
• E) a random amount of return attributable to firm events.

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Definitions:

Ontario

A province in eastern Canada known for its diverse population, natural landscapes, and as the location of Canada’s largest city, Toronto.

National Bank

A financial institution, chartered by a government, which holds exclusive powers such as issuing currency and regulating other banks, crucial for implementing national monetary policies.

War of 1812

A military conflict fought between the United States and Great Britain from 1812 to 1815, largely over issues of trade and maritime rights.

South and West

Regions often referenced in the context of geographical, cultural, or historical discussions within a specific country, notably the United States.