Ask Question
BusinessBusiness
15 August, 00:14

The APT itself does not provide guidance concerning the factors that one might expect to determine risk premiums. How should researchers decide which factors to investigate? Why, for example, is industrial production a reasonable factor to test for a risk premium?

+3
Answers (1)
  1. 15 August, 01:30
    0
    Answer and Explanation:

    The APT components must connect with significant wellsprings of vulnerability, i. e., wellsprings of vulnerability that are of worry to numerous financial specialists. Analysts ought to research

    Variables that relate with vulnerability in utilization and speculation openings. Gross domestic product, the swelling rate, and loan fees are among the components that can be normal to decide hazard premiums. Specifically, mechanical generation (IP) is a decent marker of changes in the business cycle. Subsequently, IP is a contender for a factor that is exceptionally associated with vulnerabilities that have to do with speculation and utilization openings in the economy.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The APT itself does not provide guidance concerning the factors that one might expect to determine risk premiums. How should researchers ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
After being hired, each employee's performance is periodically evaluated by a manager, supervisor or boss usually every: a. month. b. 6 months. c. 2 years. d. 5 years.
Answers (1)
The following information is from Amos Company for the year ended December 31, 2019. a. Retained earnings at December 31, 2018 (before discovery of error), $858,000. b. Cash dividends declared and paid during the year, $11,000. c.
Answers (1)
Which of the following statements is not correct? a. Trade has potential to benefit all nations b. Trade allows nations to consume outside of their production possibilities curves. c. Trade allows for specialization d.
Answers (1)
Evan believes stratification is important for society. He thinks inequality is good as it motivates the poor to work harder and rewards those for their hard work.
Answers (1)
Which one of the following lubricants is recommended for use in gearboxes? a. Cream grease b. Motor oil c. Light oil d. Automobile grease
Answers (1)
New Questions in Business
Which entry would record the payment of a utility bill? A. Debit Utilities Expense; credit Cash B. Debit Cash; credit Utilities Expense C. Debit Utilities Expense; credit Accounts Payable D. Debit Accounts Receivable; credit Utilities Expense
Answers (1)
Waymire Company sells a motor that carries a 60-day unconditional warranty against product failure. From prior years' experience, Waymire estimates that 3% of units sold each period will require repair at an average cost of $100 per unit.
Answers (1)
In the film industry, what is the term used to describe all the activities and actions taken in order to create a movie? a. acquisition b. distribution c. exhibition d. production
Answers (1)
Taxpayers who recover all or part of an item that they deducted or took a credit for in a prior year, must report the same amount as
Answers (1)
The currently maturing portion of long-term debt should be classified as a current liability if funds used to liquidate it are a. currently classified as a long-term asset. b. the debt is to be converted into common stock. c.
Answers (1)
Home » Business » The APT itself does not provide guidance concerning the factors that one might expect to determine risk premiums.
Sign Up Forgot Password?