In Contrast to the CAPM,the APT Assumes That There Can

question 76

Multiple Choice

In contrast to the CAPM,the APT assumes that there can be several sources of ________ that cannot be eliminated through diversification.

• A)nonsystematic risk
• B)systematic risk
• C)credit risk
• D)arbitrary risk

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Definitions:

Coin

A small, flat, circular piece of metal issued by a government as money.

Proportions

Ratios that compare a part to the whole, often expressed as fractions, decimals, or percentages.

95%

Refers to a confidence interval percentage commonly used in statistics to represent the range within which the true population parameter is expected to fall, with 95% certainty.

Coin

A flat, typically round piece of metal with an official stamp, used as money.