Which of the Following Is(are) True Regarding the APT?I) the Security

question 64

Multiple Choice

Which of the following is(are) true regarding the APT?I) The security market line does not apply to the APT.II) More than one factor can be important in determining returns.III) Almost all individual securities satisfy the APT relationship.IV) It doesn't rely on the market portfolio that contains all assets.

• A) II, III, and IV
• B) II and IV
• C) II and III
• D) I, II, and IV
• E) I, II, III, and IV

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Definitions:

Employment Discrimination

Unfair treatment of employees or job applicants based on personal attributes such as race, gender, age, or sexual orientation, rather than their qualifications or performance.

Nonmonetary Attractiveness

The appeal of something based on non-financial factors, such as location, reputation, or quality of life.

Supply of Low-skill Workers

The availability of workers without specialized training or high qualifications in the labor market.

Corrected Earnings

Earnings that have been adjusted for factors such as inflation, accounting changes, or tax laws to provide a more accurate measure of real profitability.