Consider the One-Factor APT

question 4

Multiple Choice

Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 18%. The standard deviation on the factor portfolio is 16%. The beta of the well-diversified portfolio is approximately

• A) 0.80.
• B) 1.13.
• C) 1.25.
• D) 1.56.

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Pertaining to a failure to provide adequate care or attention.

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