Based on a Multifactor Model,systematic Risk Arises From

question 14

Multiple Choice

Based on a multifactor model,systematic risk arises from:

• A)a common factor,F.
• B)negative betas.
• C)the lack of market liquidity.
• D)the variable,ε.
• E)a positive covariance between securities.

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Definitions:

Classes

Categories or groups of objects or individuals sharing common attributes, qualities, or characteristics.

Distribution

In syllogistic logic, the term refers to the way in which a term in a categorical proposition is applied to all members of the category it denotes.

Serious Injuries

Injuries that are severe and potentially life-threatening, often requiring immediate medical attention.

Estate

A term often used in law to refer to an individual's property, assets, and liabilities left behind after death.