The Single Factor APT Model That Resembles the Market Model

question 39

Multiple Choice

The single factor APT model that resembles the market model uses _________ as the single factor.

• A)arbitrage fees
• B)GNP
• C)the inflation rate
• D)the market return
• E)the risk-free return

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Definitions:

Semantics

The branch of linguistics and logic concerned with meaning, including the ways in which words and sentences convey meaning.

Accommodation Strategy

A conflict resolution method where one party gives in to the wishes or demands of another, often used to preserve harmony.

Alienates

Causes someone to feel isolated or estranged from others or a group.

Discourages

Actions or factors that reduce motivation or inclination towards a certain behavior or action.