Consider the Multifactor APT with Two Factors

question 25

Multiple Choice

Consider the multifactor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolios are 5% and 6%, respectively. Stock A has a beta of 1.2 on factor-1, and a beta of 0.7 on factor-2. The expected return on stock A is 17%. If no arbitrage opportunities exist, the risk-free rate of return is

• A) 6.0%.
• B) 6.5%.
• C) 6.8%.
• D) 7.4%.

Identify factors contributing to childhood obesity and its prevalence.

Grasp the concept of reaction time and its relevance to cognitive processing.

Understand Jean Piaget's stages of cognitive development and their applications.

Acknowledge the role of classification in cognitive development.

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Definitions:

Receivables Collection

The process of managing and collecting payments from customers who have purchased goods or services on credit.

Trust Receipt

A document issued by a bank to a buyer who has obtained a loan to purchase goods, wherein the buyer agrees to hold the goods in trust for the bank until the loan is repaid.

Short-Term Financing

Funding obtained for a period typically less than a year, used to cover immediate financial needs of a business.

Acquisition Of Inventory

The process a business undertakes to obtain supplies or products that it intends to sell to its customers.