Consider the One-Factor APT

question 69

Multiple Choice

Consider the one-factor APT. The variance of the return on the factor portfolio is .08. The beta of a well-diversified portfolio on the factor is 1.2. The variance of the return on the well-diversified portfolio is approximately ________.

• A) .1152
• B) .1270
• C) .1521
• D) .1342

---

Definitions:

Company's Development

The process of growing or improving a company through expansion, innovation, or increasing its market presence.

Organizational Grapevine

A rephrased term for informal networks within a company through which rumors and unofficial information circulate among employees.

Corporate Leaders

Senior executives and managers within a corporation who set strategic direction, make critical decisions, and lead the organization towards its objectives.

Web-Based Magazines

Web-Based Magazines are digital publications available on the internet, offering articles, news, and other content similar to traditional print magazines, but accessible online.