Consider the One-Factor APT

question 23

Multiple Choice

Consider the one-factor APT. The standard deviation of returns on a well-diversified portfolio is 19%. The standard deviation on the factor portfolio is 12%. The beta of the well-diversified portfolio is approximately

• A) 1.58.
• B) 1.13.
• C) 1.25.
• D) 0.76.

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Definitions:

Dermis

The layer of skin beneath the epidermis that contains sweat glands, hair follicles, and connective tissue.

Nerve Root

The initial segment of a nerve leaving the central nervous system, which can be involved in transmitting sensory information and motor control signals to the body.

Blistering Rash

A skin condition characterized by the formation of small, fluid-filled blisters, which can result from various causes like infections, allergies, or heat.

Arrector Pili

Muscles attached to most hair follicles and found in the dermis.