A Two Factor Model for the Return for Security X

question 21

Multiple Choice

A two factor model for the return for Security X is 2% - 3(CPI) + 2(GDP) . If you forecast CPI to be 2% and GDP to be 6%, the expected return for Security X is

• A) 20%.
• B) 12%.
• C) 2%.
• D) 8%.

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Definitions:

Campus

A term used to describe the physical grounds and buildings where a college or university is located.

Placebo Effects

The phenomenon in which a person experiences a perceived improvement in condition due to their belief in the treatment's efficacy, despite it having no therapeutic effect.

Anxiety Levels

Refer to the intensity of feelings of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Reduced Anxiety

A decrease in feelings of worry, nervousness, or unease about something with an uncertain outcome, often as a result of deliberate action or therapy.