Consider the One-Factor APT

question 27

Multiple Choice

Consider the one-factor APT. The standard deviation of return on a well-diversified portfolio is 20%. The standard deviation on the factor portfolio is 12%. The beta of the well-diversified portfolio is approximately ________.

• A) .60
• B) 1
• C) 1.67
• D) 3.20

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Definitions:

Dietary Intake

The amount and type of food and beverages consumed by an individual or population, significant for nutritional status and health.

Anabolism

All of the synthesis reactions that occur within the body; requires energy.

Protein Production

The biological process by which cells create proteins, which involves transcription of DNA to RNA and translation of RNA into polypeptide chains.

Energy Currency

ATP, or adenosine triphosphate, often referred to as the energy currency of the cell, is a molecule that transports chemical energy within cells for metabolism.