Consider the Single-Factor APT

question 14

Multiple Choice

Consider the single-factor APT.Stocks A and B have expected returns of 12% and 14%,respectively.The risk-free rate of return is 5%.Stock B has a beta of 1.2.If arbitrage opportunities are ruled out,stock A has a beta of __________.

• A)0.67
• B)0.93
• C)1.30
• D)1.69
• E)none of the above

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Definitions:

Long-Term Memories

Memories stored with an unlimited capacity that can last from a few days to a lifetime, including both declarative (explicit) memories, such as facts and events, and non-declarative (implicit) memories, such as skills and conditioned responses.

Eyewitness Memory

The recall and recognition capabilities of individuals who have observed specific incidents, particularly used in the context of legal evidence.

Leading Questions

A type of question that implies or contains its own answer, often guiding the respondent towards a desired response.

False Memory

False memory refers to the psychological phenomenon where a person recalls something that did not happen or remembers it differently from the way it actually happened.