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:

Individual Competence

Individual competence refers to a person's ability to perform a specific task or role effectively, based on their skills, knowledge, and experience.

High-Performance Team

A high-performance team is a group of individuals who are highly focused on their goals and achieve superior results through cooperation, clear communication, and mutual respect.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Pressure to Conform

The influence or expectation to behave in ways that are consistent with group norms.