In Contrast to the CAPM,the APT Assumes That There Can

question 76

Multiple Choice

In contrast to the CAPM,the APT assumes that there can be several sources of ________ that cannot be eliminated through diversification.

• A)nonsystematic risk
• B)systematic risk
• C)credit risk
• D)arbitrary risk

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Definitions:

Agent

One that acts or has the power or authority to act for another.

ATM

An automated teller machine, a specialized computer that allows bank customers to perform financial transactions without the need for a human cashier.

Checking Account

A bank account that allows for both deposits and withdrawals, typically used for day-to-day financial transactions.

Cashier's Check

A check issued by a bank, drawing on its own funds rather than on the account of a private individual, offering a secure means of payment.