Assuming That the Single Factor APT Model Applies, the Beta

question 18

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.

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Definitions:

Unhealthy Behaviors

Actions or habits that negatively affect an individual’s physical or mental health, such as smoking or excessive drinking.

Eating Out

The practice of consuming meals prepared and served by a food establishment rather than eating at home.

Overly Positive Outcome Expectancies

An individual's unrealistic anticipation or belief that favorable results will occur, often without considering potential negative outcomes.

Immediate Determinants

Refers to factors that directly affect a situation or outcome, often in the context of health or social issues.