In Their Multifactor Model, Chen, Roll, and Ross Found

question 51

Multiple Choice

In their multifactor model, Chen, Roll, and Ross found

• A) that two market indexes, the equally-weighted NYSE and the value-weighted NYSE, were not significant predictors of security returns.
• B) that the value-weighted NYSE index had the incorrect sign, implying a negative market risk premium.
• C) expected changes in inflation-predicted security returns.
• D) that two market indexes, the equally-weighted NYSE and the value-weighted NYSE, were not significant predictors of security returns and that the value-weighted NYSE index had the incorrect sign, implying a negative market risk premium.
• E) All of the options are correct.

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Definitions:

Anatta

A Buddhist concept meaning "not-self" or the absence of a permanent, unchanging soul.

Singular Self

The concept of having a unified, cohesive identity or sense of self that remains constant across different contexts and over time.

Independent

A state or condition of having autonomy and freedom from external control or support.

Rogerian Psychotherapy

A form of therapy developed by Carl Rogers, emphasizing unconditional positive regard, empathy, and the therapeutic alliance to facilitate personal growth.