Advantage(s) of the APT Is (Are)

question 70

Multiple Choice

Advantage(s) of the APT is (are)

• A) that the model provides specific guidance concerning the determination of the risk premiums on the factor portfolios.
• B) that the model does not require a specific benchmark market portfolio.
• C) that risk need not be considered.
• D) that the model provides specific guidance concerning the determination of the risk premiums on the factor portfolios, and that the model does not require a specific benchmark market portfolio.
• E) that the model does not require a specific benchmark market portfolio, and that risk need not be considered.

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Definitions:

Authentic

Genuine or true to its origins, qualities, or commitments.

Research Method(s)

Systematic procedures that researchers follow to collect, analyze, and interpret data in order to understand phenomena, test hypotheses, or answer questions.

Probability Sample

In which the units have a known and nonzero chance of being selected.

Right to Privacy

The individual's human right to keep their personal matters and relationships confidential and free from intrusion or surveillance.