Consider the One-Factor APT

question 1

Multiple Choice

Consider the one-factor APT.The standard deviation of returns on a well-diversified portfolio is 18%.The standard deviation on the factor portfolio is 16%.The beta of the well-diversified portfolio is approximately __________.

• A)0.80
• B)1.13
• C)1.25
• D)1.56
• E)none of the above

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Definitions:

Target Response

A specific reaction or behavior that is sought after in a particular situation or as a result of a treatment or intervention.

Self-monitoring

The action of observing and recording one's own behaviors, thoughts, or emotions, often used in behavioral therapy or self-improvement contexts.

Target Behavior

A specific behavior that is identified for change or modification in therapeutic or behavior modification contexts.

Self-efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.