In a Multifactor APT Model, the Coefficients on the Macro

question 64

Multiple Choice

In a multifactor APT model, the coefficients on the macro factors are often called

• A)systemic risk.
• B)factor sensitivities.
• C)idiosyncratic risk.
• D)factor betas.
• E)factor sensitivities and factor betas.

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Definitions:

Machine Hours

A measure of the amount of time a machine is operated, often used for accounting, cost allocation, or operational planning.

Labor Hours

The total number of hours worked by all employees in a specific time period.

Marginal Product

The additional output that is gained by employing one more unit of a particular input, holding all other inputs constant.

Total Output

The quantity of goods and services produced by a firm or economy over a specific period.