Like CAPM, APT Does Not Assume a Single-Period Investment Horizon

question 59

True/False

Like CAPM, APT does not assume a single-period investment horizon.

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Definitions:

Firms

Business entities that produce goods or provide services with the aim of making a profit.

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on financial risk to do so.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Limited Incomes

Economic condition where individuals or households have restricted earnings, impacting their spending capabilities and living standards.