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

---

Definitions:

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or a system without violating any constraint.

Catalysts

Substances that increase the rate of a chemical reaction without themselves being consumed in the process.

Reaction Times

The amount of time taken to respond to a stimulus or task.

Degrees Of Freedom

The number of independent pieces of information upon which the estimation or calculation of a statistic is based.