Assuming That the Single Factor APT Model Applies, the Beta

question 31

Multiple Choice

Assuming that the single factor APT model applies, the beta for the market portfolio is:

• A)zero.
• B)one.
• C)the average of the risk free beta and the beta for the highest risk security.
• D)impossible to calculate without collecting sample data.
• E)None of the above.

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Definitions:

Skill-Based Pay

A compensation system where employees are paid based on the skills and qualifications they bring to their job, rather than just their job title or position.

Informal Rewards

Non-official recognition or rewards, often personal or social, given in the workplace or other settings.

Change Competency

An organization’s or individual's ability to effectively manage and adapt to change.

Nucor's Profit-Sharing

A financial incentive strategy used by Nucor Corporation, involving the distribution of company profits among its employees.