One Approach for Using Multifactor Models Is to Use Factors

question 42

Multiple Choice

One approach for using multifactor models is to use factors that capture systematic risk.Which of the following is not a common factor used in this approach?

• A) Unexpected changes in inflation
• B) Consumer confidence
• C) Yield curve shifts
• D) Unexpected changes in real GDP
• E) All of the above are common factors used to measure systematic risk

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Definitions:

Norm

A standard or pattern of social behavior that is accepted in a group or society as normal or typical.

Robbers Cave Experiment

A social psychology experiment that demonstrated how intergroup conflict can arise from competition over resources and how such conflicts can be overcome through cooperative tasks.

Us-Them Hostility

A psychological and social phenomenon where in-group members harbor negative attitudes and feelings towards out-group members, often leading to conflict and discrimination.

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.