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

---

Definitions:

Seldom Modified

Refers to something that is rarely changed or altered.

Flexible Work Schedules

Work arrangements that allow employees to vary their hours and days of work, providing greater personal freedom.

Work-home Conflict

A form of conflict where the demands of work and home responsibilities are incompatible and negatively affect each other.

Transition to Retirement

The process of adjusting from a working life to retirement, involving emotional, financial, and lifestyle changes to adapt to a new way of living.