The APT Differs from the CAPM Because the APT

question 20

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.

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Definitions:

Global Trade

The exchange of goods, services, and capital across international borders or territories.

Documents of Title

Legal documents that provide proof of ownership of property, including titles for vehicles or deeds for real estate.

Warehouse Receipts

Documents issued by warehouse operators certifying the possession and storage of specified goods.

Bills of Lading

Official documents issued by a carrier to acknowledge the receipt of cargo for shipment.