The APT Asset Pricing Line Is 6% + 2%(bp)

question 1

Multiple Choice

The APT asset pricing line is 6% + 2%(bp) . If the portfolio has unit sensitivity to this factor, the expected return for the portfolio is

• A) 6%.
• B) 8%.
• C) 12%.
• D) 10%.

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Definitions:

Impacted

Describes a condition where a substance is tightly packed or an object is wedged firmly in place, making removal difficult.

Femur

The thigh bone of the leg.

Inadequate Calcium

Insufficient levels of calcium in the body, which can lead to weakened bones and other health issues.

Kyphosis

A convex curvature of the spine; humpback.