The single-factor market model assumes there are how many sources of risk in asset returns? A) One. B) Two. C) Three.
uh, one
You suck Qbank! Your answer: A was incorrect. The correct answer was B) Two. The market model assumes that there are two sources of risk in asset returns, unanticipated macroeconomic events and firm-specific events.
i’m pretty sure i got this question on an “intermediate/advanced” 60q session so now i’m including all categories of questions because seems that it doesn’t mean shit (but i think my average qbank score has now gone up from 70% to about 75-80% by including the beginner questions x)
this is correct–not sure why they called it “single factor” rather than just market model though. A stupid question like this would never show up on the exam though…