Which of the Following Statements Is False

question 61

Multiple Choice

Which of the following statements is false?

• A) The risk premium of any marketable security can be written as the sum of the risk premiums of each factor multiplied by the sensitivity of the stock with those factors.
• B) The factor beta measures the sensitivity of the stock to a particular factor.
• C) If we use more than one portfolio as factors, then together these factors will capture systematic risk, but each factor captures different components of the systematic risk.
• D) When we use more than one portfolio to capture risk, the model is known as a single factor model.

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Definitions:

States

Within a context of psychology, states refer to temporary conditions of an individual, such as emotions or consciousness. In geography, states refer to territories with a centralized government.

Single By Choice

The state of choosing to remain unmarried and/or without a romantic partner out of personal preference rather than external circumstances.

Describe Themselves

This refers to the process by which individuals articulate or express their own attributes, characteristics, and feelings verbally or through other means of communication.

Attributes

Characteristics or qualities that describe an object, person, or phenomenon.