An Important Difference Between CAPM and APT Is

question 36

Multiple Choice

An important difference between CAPM and APT is

• A)CAPM depends on risk-return dominance; APT depends on a no-arbitrage condition.
• B)CAPM assumes many small changes are required to bring the market back to equilibrium; APT assumes a few large changes are required to bring the market back to equilibrium.
• C)implications for prices derived from CAPM arguments are stronger than prices derived from APT arguments.
• D)Both CAPM depends on risk-return dominance; APT depends on a no-arbitrage condition and CAPM assumes many small changes are required to bring the market back to equilibrium; APT assumes a few large changes are required to bring the market back to equilibrium.

Acknowledge the role of leadership in the face of crises and the importance of a proactive, transparent response.

Understand the implications of coercive power and its application in maintaining order and discipline.

Understand the Type A and Type B behavior patterns and their impact on health.

Recognize the effects of chronic and acute stress on health.

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Definitions:

Hypnotized

The state of having decreased peripheral awareness and an increased focus on a single stimulus, often induced by another person.

Psychological Dependence

A condition in which an individual feels a compulsion to continue using a substance or engaging in behavior due to emotional or psychological needs.

Physical Dependence

A physiological state of adaptation to a substance, resulting in withdrawal symptoms when that substance is reduced or removed.

Activation-Synthesis Hypothesis

Premise that states that dreams are created by the higher centers of the cortex to explain the activation by the brain stem of cortical cells during REM sleep periods.