Tests of Multifactor Models Indicate

question 49

Multiple Choice

Tests of multifactor models indicate

• A) the single-factor model has better explanatory power in estimating security returns.
• B) macroeconomic variables have no explanatory power in estimating security returns.
• C) it may be possible to hedge some economic factors that affect future consumption risk with appropriate portfolios.
• D) multifactor models do not work.
• E) none of these is true.

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Definitions:

Predictor Of Divorce

Factors or behaviors scientifically shown to increase the likelihood of a marriage ending in divorce.

John Gottman

A psychologist recognized for his work on marital stability and divorce prediction through extensive research on couples' interactions.

Invulnerable Responses

Ignoring, laughing, or being silent in response to a hurtful message.

Acquiescent

Displaying a behavior or attitude of agreeing or assenting passively, often without personal protest or the desire to give one's own opinion.