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:

Brook Farm

Transcendentalist commune in West Roxbury, Massachusetts, populated from 1841 to 1847 principally by writers (Nathaniel Hawthorne, for one) and other intellectuals.

Reform Communities

Groups or societies established with the intention of enacting social, religious, or political reforms, often living together under shared principles.

Civil War

A conflict within a country between opposing factions or regions, historically significant examples include the American Civil War fought from 1861 to 1865.

Cooperative Basis

A foundational principle of working together where individuals or groups collaborate, usually in economic ventures, for mutual benefit.