In a Factor Model,the Return on a Stock in a Particular

question 48

Multiple Choice

In a factor model,the return on a stock in a particular period will be related to _________.

• A)firm-specific events
• B)macroeconomic events
• C)the error term
• D)both A and B
• E)neither A nor B

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Definitions:

Securities Act of 1933

A U.S. law enacted to ensure greater transparency in financial statements so investors can make informed decisions.

Auditor Liability

The legal responsibility of auditors for their professional actions, particularly in relation to the accuracy of financial statements they audit.

Defective Registration Statement

A legal document filed with the SEC that contains inaccurate, misleading, or incomplete information about securities being offered for public sale.

Section 11

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