Both the CAPM and the APT Stress That Expected Return

question 62

True/False

Both the CAPM and the APT stress that expected return is not affected by unique risk.

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Definitions:

Sales Over Cost

It refers to the ratio or difference between the sales generated and the cost of the goods sold, aimed at measuring profitability.

Gross Profit

The income a firm generates once it subtracts the expenses involved in the production and sale of its goods, or the expenses incurred from offering its services.

Income From Operations

The earnings generated from a company's everyday, core business operations.