The Return-Generating Process That Attributes the Return on a Security

question 15

Multiple Choice

The return-generating process that attributes the return on a security to the security's sensitivity to the movements of various common factors is known as a factor or ______ model.

• A) market
• B) index
• C) market portfolio
• D) sensitivity

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Definitions:

Ratio Scale

A scale of measurement that has a meaningful zero value and allows for comparisons of absolute magnitudes and the computation of ratios.

Measurement

The process or the result of quantifying the characteristics or properties of something, usually by comparing it to a standard.

Defined

Clearly specified or identified.

Data Warehousing

The electronic storage of a large amount of information by a business, in a manner that is secure, reliable, easy to retrieve, and easy to manage.