The Arbitrage Pricing Theory (APT) Differs from the Capital Asset

question 63

Multiple Choice

The arbitrage pricing theory (APT) differs from the capital asset pricing model (CAPM) in that it suggests that stock prices

• A)are influenced only by the market itself.
• B)can be influenced by a set of factors in addition to the market.
• C)are not influenced at all by the market.
• D)cannot be influenced at all by the industry factors.

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Definitions:

Joint Taxpayer

Two individuals, usually married, who file a single tax return together, combining their incomes and sharing deductions.

Education Credit Deduction

A type of deduction that allows eligible taxpayers to subtract education expenses from their taxable income, enhancing affordability for higher education.

Dependent

An individual, usually a child or spouse, who relies on another person (typically a family member) for financial support and qualifies for certain tax benefits on that person’s tax return.

College Fees

Expenses related to attending college, including tuition, room and board, and other related costs.