In a Portfolio of Risky Assets, the Response to a Factor

question 19

Multiple Choice

In a portfolio of risky assets, the response to a factor, Fi, can be determined by:

• A)summing the weighted \(\beta\)_i s and multiplying by the factor F_i.
• B)summing the F_i s.
• C)adding the average weighted expected returns.
• D)summing the weighted random errors.
• E)All of the above.

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