Consider the Single Factor APT

question 16

Multiple Choice

Consider the single factor APT. Portfolio A has a beta of 0.5 and an expected return of 12%. Portfolio B has a beta of 0.4 and an expected return of 13%. The risk-free rate of return is 5%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio _________ and a long position in portfolio

• A) A; A
• B) A; B
• C) B; A
• D) B; B

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Definitions:

Indirect Emissions

Emissions that result from the activities of an entity but occur at sources owned or controlled by another entity, such as the production of purchased electricity.

Greenhouse Gas Emissions

Refers to gases released into the atmosphere as a result of human activities, such as carbon dioxide and methane, which contribute to the greenhouse effect and global warming.

Energy Efficient

Using less energy to perform the same task, reducing energy waste and often associated with environmental conservation.

Waste Diverted

The amount of waste materials redirected away from traditional disposal methods such as landfilling, to be recycled, reused, or composted.