The APT Assumes That Security Returns Are Normally Distributed

question 87

True/False

The APT assumes that security returns are normally distributed.

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Definitions:

Development

In a general context, it refers to the process of developing or being developed, often associated with economic, social, or technological progress and improvement.

Incremental Cash Flow

The additional cash flow from a company's activities or projects, specifically distinguishing between the cash flows with and without the project.

Taxes

Compulsory financial charges or levies imposed by a government on individuals and organizations to fund public expenditures.

Erosion

The portion of cash flows of a new project that come at the expense of a firm’s existing operations.