Consider the Following List of Risk Factors: 1

question 96

Multiple Choice

Consider the following list of risk factors: 1. monthly growth in industrial production
2. return on high book to market value portfolio minus return on low book to market value portfolio
3. change in inflation
4. excess return on stock market portfolio
5. return on small cap portfolio minus return on big cap portfolio
6. unanticipated change in bond credit spread
Which of the following factors would you use to develop a macroeconomic-based risk factor model?

• A) 1, 2, and 3.
• B) 1, 3, and 5.
• C) 2, 4, and 5.
• D) 1, 3, and 6.
• E) 4, 5, and 6.

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Definitions:

Ecosystems

Communities of living organisms in conjunction with the nonliving components of their environment, interacting as a system.

Sociologists

Professionals who study social behavior, patterns, and functions within human societies.

Cultural Diffusion

The spread of cultural beliefs and social activities from one group to another through interaction and integration.

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The average number of children born to a woman over her lifetime, used to assess population growth or decline.