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:

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The amount of an individual's or business's income used to determine how much tax they owe to the government, after deductions and exemptions.

Peter Drucker

A renowned management consultant, educator, and author, considered one of the founding figures of modern business management.

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