The APT Differs from the CAPM Because the APT _________

question 25

Multiple Choice

The APT differs from the CAPM because the APT _________.

• A)places more emphasis on market risk
• B)minimizes the importance of diversification
• C)recognizes multiple unsystematic risk factors
• D)recognizes multiple systematic risk factors
• E)none of the above

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Definitions:

Truth

The quality or state of being in accord with fact or reality, or fidelity to an original or standard.

Hair Brush

A tool consisting of a handle and a bristled head used for styling, smoothing, and detangling hair.

Meg

A common short form of the name Megan or Margaret.

Untapped Resources

Resources, often natural, that have not been used yet and hold potential value.