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In the Multifactor CAPM, Besides Investing in the Market Portfolio

Question 29

Multiple Choice

In the multifactor CAPM, besides investing in the market portfolio, investors will also allocate funds to something equivalent to a mutual fund that ________.


A) confronts heads on a particular extra-market risk
B) invests in particular extra-market risk
C) hedges a particular extra-market risk
D) exposes a particular extra-market risk

Correct Answer:

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