The Most Serious Drawback of the Arbitrage Pricing Model Is

question 105

Multiple Choice

The most serious drawback of the arbitrage pricing model is

• A) the requirement of a negative market risk premium.
• B) its inability of identifying important factors.
• C) its reliance on a market index.
• D) the disequilibrium assumption.
• E) none of the above

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Definitions:

Conditions of Worth

Conditions set by significant others (like parents) on their acceptance or love for an individual, which can affect the person's self-concept and psychological development according to Carl Rogers.

Career Choice

The process of deciding which occupation is best suited to an individual's interests, values, and skills.

Theory Emphasis

The specific focus or importance that a theory places on particular concepts or principles.

Reciprocal Determinism

A concept in psychology introduced by Albert Bandura, suggesting that an individual's behavior, personal factors, and the environment all influence each other in a two-way reciprocal relationship.