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Both the CAPM and the APT Stress That Unique Risk

question 20

True/False

Both the CAPM and the APT stress that unique risk does not affect expected return.


Definitions:

Corporate Loyalty

The devotion and allegiance of an employee or group towards their company and its goals, often reflected through commitment and hard work.

Health and Pension Benefits

Forms of compensation provided by employers in addition to salary, including healthcare coverage and retirement savings plans.

Older Employees

Workers within an organization who are typically closer to retirement age, often bringing years of experience and knowledge to their roles.

Employee Assistance Programs

Services offered by employers to help employees deal with personal problems that might adversely impact their work performance, health, and well-being.

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