Which of the Following Is (Are)true Regarding the APT

question 9

Multiple Choice

Which of the following is (are) true regarding the APT?
I.The Security Market Line does not apply to the APT.
II.More than one factor can be important in determining returns.
III.Almost all individual securities satisfy the APT relationship.
IV.It doesn't rely on the market portfolio that contains all assets.

• A)II, III, and IV
• B)II and IV
• C)II and III
• D)I, II, and IV
• E)I,II,III,and IV

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Definitions:

Important Values

Fundamental beliefs or standards that guide behaviors and decision-making.

Valuing Process

The act of assessing and recognizing the importance, worth, or usefulness of something or someone in a particular context.

Values Drift

The gradual shift in the core beliefs, principles, and values of an individual or organization over time.

Legal And Ethical

Pertaining to the adherence to both the law and moral guidelines in decision-making processes to ensure fairness, justice, and integrity.