Consider the Following Two Factor APT Model

question 23

Multiple Choice

Consider the following two factor APT model
E(R) = ?? + ??b? + ??b?

• A) ?1 is the expected return on the asset with zero systematic risk.
• B) ?1 is the expected return on asset 1.
• C) ?1 is the pricing relationship between the risk premium and the asset.
• D) ?1 is the risk premium.
• E) ?1 is the factor loading.

---

Definitions:

Telomerase

An enzyme that adds telomere sequences to the ends of chromosomes, helping to maintain their integrity during cell division.

Telomeres

Protective caps at the end of chromosomes, playing a key role in cellular aging and division.

G2 Phase

The phase of the cell cycle following DNA synthesis and preceding cell division, during which the cell prepares to divide.

Cell Cycle

The series of events that take place in a cell leading to its division and duplication, including interphase, mitosis, and cytokinesis.