Risk factors in the APT must correlate with uncertainty in a. investment opportunities and inflation rate b. consumption and GDP C. consumption and investment opportunities d. GDP and inflation rate Active portfolio managers go long on alpha stock and go short on alpha stocks a. positive; zero b. negative; zero o C. positive; negative d. negative; positive When returns are normally distributed over very short time periods, then O a. returns up to a month are considered to be normal b. returns up to a year are considered to be normal c. all of the provided answers d. returns up to a quarter are considered to be normal When plotting an undervalued portfolio relative to the SML, the portfolio lies: a. below the SML b. on the SML c. above the SML d. insufficient data given