Both the APT and the CAPM Imply a Positive Relationship

question 22

Multiple Choice

Both the APT and the CAPM imply a positive relationship between expected return and risk.The APT views risk:

• A)very similarly to the CAPM via the beta of the security.
• B)in terms of individual intersecurity correlation versus the beta of the CAPM.
• C)via the industry wide or marketwide factors creating correlation between securities.
• D)the standardized deviation of the covariance.
• E)None of the above.

Understand the various reasons why new products fail in the market.

Understand the legal procedures and requirements for corporate shareholder meetings and resolutions.

Comprehend the legal liabilities of directors and officers in corporate governance.

Grasp the ethical and legal responsibilities of directors regarding corporate opportunities and conflict of interest.

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