Risk Factors in the APT Must Possess All of the Following

question 50

Multiple Choice

Risk factors in the APT must possess all of the following the characteristics except:

• A)Factors must be readily observable in risk/return space.
• B)Each factor must have a pervasive influence on stock returns
• C)The factors must influence expected return.
• D)Factors must be unpredictable.

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Definitions:

Marcus Garvey

Marcus Garvey was a Jamaican political leader, publisher, journalist, entrepreneur, and orator who was a staunch proponent of the Black nationalism and Pan-Africanism movements.

African American Leader

An individual from the African American community who has played a significant role in political, social, or cultural movements.

Philosophy

The study of fundamental questions regarding existence, knowledge, values, reason, mind, and language.

Agriculture Industry

The sector of the economy that produces food, fiber, and other goods by the systematic cultivation of plants and husbandry of animals.