The Arbitrage Pricing Theory (APT)implies That the Market Portfolio Is

question 36

True/False

The arbitrage pricing theory (APT)implies that the market portfolio is efficient.

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Definitions:

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, income, employment, industrial production, and wholesale-retail sales.

Stagflation

A situation in an economy where there is slow economic growth, high unemployment, and rising prices simultaneously.

Inflation

The escalation rate of average prices for goods and services, which deteriorates buying power.

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices increase.