In the Empirical Study of a Multi-Factor Model by Chen,Roll,and

question 5

Multiple Choice

In the empirical study of a multi-factor model by Chen,Roll,and Ross,a factor that appeared to have significant explanatory power in explaining security returns was________.

• A)the change in the expected rate of inflation
• B)the risk premium on corporate bonds
• C)the unexpected change in the rate of inflation
• D)industrial production
• E)B,C and D

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Definitions:

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no contract exists between the parties.

Reasonable Value

An estimation of the fair or appropriate worth of goods, services, or property, taking into consideration factors such as market conditions and the necessity of the item.

Specific Performance

A legal remedy in which a court requires a party to fulfill the exact terms of a contract, rather than paying damages for breach.

Willful Misconduct

Intentional or deliberate wrongdoing or reckless behavior by an individual, typically leading to harm or breach of contractual obligations.