In Developing the APT,Ross Assumed That Uncertainty in Asset Returns

question 78

Multiple Choice

In developing the APT,Ross assumed that uncertainty in asset returns was a result of

• A)a common macroeconomic factor
• B)firm-specific factors
• C)pricing error
• D)neither A nor B
• E)both A and B

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Definitions:

Research Study

A systematic investigation aimed at discovering new knowledge or understanding existing information through a defined procedure.

Behavioral Intention

An individual's conscious plan or decision to exert effort to perform a particular behavior, often influenced by attitudes towards the behavior and subjective norms.

Theory of Reasoned Action

A psychological theory that predicts an individual's behavior based on their intention to perform that behavior, which is influenced by attitudes towards the behavior and subjective norms.

Planned Behavior

Refers to the Theory of Planned Behavior, which predicts how individuals' intentions toward behaviors are influenced by attitudes, subjective norms, and perceived behavioral control.