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:

Impulsive

Acting on or inclined to act on one's impulses rather than careful thought, often with disregard to the consequences.

Five-Factor Model

A model that describes human personality through five broad domains: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Conscientiousness

A personality trait characterized by carefulness, diligence, and the desire to do a task well.

Punctual

The quality of being on time to appointments or obligations, reflecting a respect for other people's time as well as one's own.