Which of the Following Is True of Pure Factor Portfolios

question 10

Multiple Choice

Which of the following is true of pure factor portfolios?

• A)They have no firm-specific risk.
• B)They have no systematic risk.
• C)They are sensitive to the market factor and other major economic factors.
• D)They are portfolios with a sensitivity of 1 to all of the factors.

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Definitions:

Antifungal

Relating to or involving the use of agents that inhibit the growth of or destroy fungi.

Antibiotic

A substance used to kill or inhibit the growth of bacteria, often used in the treatment of infections.

Dermatome

A specific area of skin that is innervated by sensory fibers from a single spinal nerve root.

Grafting

A horticultural technique whereby tissues from one plant are inserted into those of another so that the two sets of vascular tissues may join together, also used in surgery for transplanting skin or other tissues.