Which of the Following Comparisons of the Capital Asset Pricing

question 44

Multiple Choice

Which of the following comparisons of the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Model (APT) is (are) true?

• A)CAPM bases the expected return on an asset on one factor--the market portfolio; the APT bases the expected return on a number of economic factors.
• B)CAPM is based on the theory that an asset's returns should compensate the investor for the risk of the investment. Risk is not factored into the APT.
• C)While CAPM requires a number of estimates, the APT factors and their values are known with certainty.
• D)All of the above statements are true.

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Definitions:

Revenue Formulas

Equations or calculations used to determine the amount of money a company generates from its business activities, typically through sales.

Patient-visits

A term used in healthcare to describe the instances in which a patient visits a healthcare provider or facility for services or consultation.

Planning Budget

A financial plan that estimates the income and expenditures for a future period, often used as a guide for financial decision making.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.