Consider the One-Factor APT

question 4

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.

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Definitions:

Sense of Pain

refers to the perception and emotional experience associated with tissue damage or potential damage to the body.

Nociceptors

Sensory neurons that respond to potentially damaging stimuli by sending signals to the spinal cord and brain, which is perceived as pain.

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment by converting energy from a specific stimulus into an electrical signal.

Perception of Pain

The subjective interpretation and experience of pain, which can be influenced by physical, emotional, and cognitive factors.