Advantage(s) of the APT Is(are)

question 37

Multiple Choice

Advantage(s) of the APT is(are)

• A) that the model provides specific guidance concerning the determination of the risk premiums on the factor portfolios.
• B) that the model does not require a specific benchmark market portfolio.
• C) that risk need not be considered.
• D) that the model provides specific guidance concerning the determination of the risk premiums on the factor portfolios, and that the model does not require a specific benchmark market portfolio.
• E) that the model does not require a specific benchmark market portfolio, and that risk need not be considered.

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Definitions:

Alignment

The process of adjusting or arranging various parts or aspects of something to achieve harmony, ensure proper positioning, or mutually reinforcing direction.

Synchronization

The process of coordinating or aligning processes, systems, or activities in time to achieve a coherent operation.

Rich Communication Medium

A means of communication that is capable of conveying a range of cues such as body language, tone of voice, and facial expressions, facilitating deeper understanding.

Perceived Fairness

The subjective judgment about the fairness or equity of social treatments and outcomes.