Which of the Below Statements Is TRUE

question 29

Multiple Choice

Which of the below statements is TRUE?

• A) The APT states that the return on a security is dependent on its market sensitivity index and an unsystematic return.
• B) The CAPM states that the return on a security is linearly related to H factors.
• C) The APT asserts that an investor is compensated for accepting unsystematic risk
• D) The APT states that investors want to be compensated for all the factors that systematically affect the return of a security.

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Definitions:

Logical Appeals

Persuasive strategies that use reasoning, facts, and evidence to convince an audience of an argument's validity.

Persuasive Claims

Statements designed to convince or influence others to adopt a particular viewpoint or take a specific action.

Mutually Beneficial

Describes a situation or agreement where all parties involved gain benefits or advantages.

Successful Resolution

The favorable outcome of a problem, conflict, or situation where the issues have been satisfactorily resolved.