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:

State Statute

A state statute is a written law passed by a legislative body at the state level, governing matters not reserved for the federal government.

DACA Order

A directive under the Deferred Action for Childhood Arrivals, allowing certain undocumented individuals brought to the U.S. as children to receive a renewable period of deferred action from deportation and eligibility for a work permit.

Due Process Clause

A constitutional guarantee that prohibits the government from depriving individuals of life, liberty, or property without fair legal procedures.

Fourteenth Amendment

The Fourteenth Amendment to the United States Constitution grants citizenship to all persons born or naturalized in the U.S. and guarantees all citizens “equal protection of the laws.”