Podcast Beta
Questions and Answers
The APT suggests that the expected return is directly proportional to sensitivity to interest rates, inflation, industrial productivity, and investor risk attitudes.
True
Roll and Ross (1980) found that the four factor linear version of the APT is less accurate than the single factor (Index) CAPM in predicting security and portfolio returns.
False
The APT model proposes that the expected return is inversely proportional to sensitivity to interest rates, inflation, and industrial productivity.
False
