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Use the Equation for the Question(s)below

Question 72

Multiple Choice

Use the equation for the question(s) below.Consider the following regression model:
Rs - rf = as + Use the equation for the question(s) below.Consider the following regression model: Rs - rf = as + (RF1 - rf) + (RF2 - rf) + ε<sub>s</sub> -The term is a(n) : A) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the second factor portfolio. B) constant term. C) error term that has an expectation of zero and is uncorrelated with either factor. D) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the first factor portfolio. (RF1 - rf) + Use the equation for the question(s) below.Consider the following regression model: Rs - rf = as + (RF1 - rf) + (RF2 - rf) + ε<sub>s</sub> -The term is a(n) : A) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the second factor portfolio. B) constant term. C) error term that has an expectation of zero and is uncorrelated with either factor. D) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the first factor portfolio. (RF2 - rf) + εs
-The term Use the equation for the question(s) below.Consider the following regression model: Rs - rf = as + (RF1 - rf) + (RF2 - rf) + ε<sub>s</sub> -The term is a(n) : A) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the second factor portfolio. B) constant term. C) error term that has an expectation of zero and is uncorrelated with either factor. D) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the first factor portfolio. is a(n) :


A) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the second factor portfolio.
B) constant term.
C) error term that has an expectation of zero and is uncorrelated with either factor.
D) measure of the expected percent change in the excess return of a security for a 1% change in the excess return of the first factor portfolio.

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