In One of Their Empirical Tests of the APT, Roll

question 148

Multiple Choice

In one of their empirical tests of the APT, Roll and Ross examined the relationship between a security's returns and its own standard deviation. A finding of a statistically significant relationship would indicate that

• A) APT is valid because a security's unsystematic component would be eliminated by diversification.
• B) APT is valid because non-diversifiable components should be explained by factor sensitivities.
• C) APT is invalid because a security's unsystematic component would be eliminated by diversification.
• D) APT is invalid because standard deviation is not an appropriate factor.
• E) None of these are correct.

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Definitions:

Accountability

State of being answerable for one's actions—a nurse answers to himself or herself, the patient, the profession, the employing institution such as a hospital, and society for the effectiveness of nursing care performed.

Fluid Status

A medical term referring to the balance of fluids within the body, including hydration levels and distribution of fluids in tissues.

Sanitation Techniques

Methods used to maintain cleanliness and prevent the spread of disease.

Florence Nightingale

A foundational figure in modern nursing known for her pioneering work in healthcare reform and her role in establishing nursing as a profession.