In a Multi-Factor APT Model,the Coefficients on the Macro Factors

question 59

Multiple Choice

In a multi-factor APT model,the coefficients on the macro factors are often called ______.

• A)systemic risk
• B)firm-specific risk
• C)idiosyncratic risk
• D)factor betas
• E)none of the above

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Definitions:

Cognitive Labeling

The process of identifying and naming emotions and feelings that are being experienced, often influencing how they are understood and acted upon.

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for rapid action in response to threats.

Central Nervous System

The complex system of nerves consisting of the brain and spinal cord that regulates and coordinates body activities.

Parasympathetic Nervous System

The parasympathetic nervous system is part of the autonomic nervous system responsible for conserving energy and bringing the body to a restful state after periods of stress or danger.