In the Active Voice, the Subject Is Acted Upon

question 6

True/False

In the active voice, the subject is acted upon. In the passive voice, the subject is the doer of the action.

---

Definitions:

Capital Asset Pricing Model

A framework that explains the connection between inherent risk and anticipated return on investments, especially in the context of equities.

Beta

A measure of a stock's volatility in relation to the overall market, indicating how much the stock price is expected to fluctuate.

Arbitrage Pricing Theory

A financial model that determines the theoretical return of an asset by considering multiple macro-economic factors or theoretical market indices.

Systematic Risk Factors

External risks that affect an entire market or asset class, and cannot be mitigated through diversification.