The Feature of the APT That Offers the Greatest Potential

question 76

Multiple Choice

The feature of the APT that offers the greatest potential advantage over the CAPM is the

• A)use of several factors instead of a single market index to explain the risk-return relationship.
• B)identification of anticipated changes in production, inflation, and term structure as key factors in explaining the risk-return relationship.
• C)superior measurement of the risk-free rate of return over historical time periods.
• D)variability of coefficients of sensitivity to the APT factors for a given asset over time.
• E)None of the options

---

Definitions:

Rare Book

A book considered valuable due to its scarcity, age, historical significance, first edition status, or connection to a notable event or person.

Half-inch Screws

Fasteners that are typically used in carpentry and construction, measuring half an inch in length.

Style Of The Case

The official title or designation of a legal case, usually including the names of the parties involved.

Case Name

The title or designation of a particular lawsuit involving legal disputes between parties in a court of law.