APT Assumes That an Arbitrage Portfolio's Nonfactor Risk Is

question 29

Multiple Choice

APT assumes that an arbitrage portfolio's nonfactor risk is

• A) -1.
• B) +.5.
• C) 0.
• D) -.5.

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Definitions:

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating the confidence in the accuracy of the findings.

Mayoral Election Race

a competition in which candidates vie for the position of mayor in a city or town.

Likely Voters

A term referring to individuals identified in public opinion polling as not only eligible to vote but who also are considered probable to vote in an upcoming election, based on specific criteria.

Majority of Votes

A situation in which more than half of the voting population votes in favor of a particular option or candidate.