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:

Interact

The act of communicating or engaging in actions with others, leading to a response or exchange of information.

Coordinate

To organize the different parts of an activity or group efficiently.

Evaluation Apprehension

A psychological concern that people have when they believe their performance is being evaluated by others, which can affect their behavior or performance.

Meetings

Gatherings of people, typically involving discussion, to convey information, make decisions, or solve problems.