Consider a One-Factor APT Model Where the Standard Deviation of the Return

question 31

Multiple Choice

Consider a one-factor APT model where the standard deviation of the return on a well-diversified portfolio is 20%. The standard deviation on the factor portfolio is 16%. The beta of the well-diversified portfolio is approximately

• A) .75
• B) 1.0
• C) 1.35
• D) 1.25

Acknowledge the reality of groups in sociological research contrary to Durkheim’s skepticism.

Understand the scientific procedures used in group research.

Grasp the foundation of causal conclusions in experimental group research.

Distinguish between the reliability and validity of measures in research.