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Both the CAPM and the APT Stress That Unique Risk

question 20

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Both the CAPM and the APT stress that unique risk does not affect expected return.


Definitions:

Democrats

A member or supporter of the Democratic Party, one of the two major political parties in the United States.

Level of Significance

A threshold for determining the statistical significance of an observed effect, indicating the probability of the result occurring by chance.

Presidential Candidates

Individuals who officially run for the office of the presidency in a country's elections.

Voters' Preferences

The choices or tendencies of individuals within a populace regarding candidates, policies, or proposals in an election.

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