The APT Assumes That Security Returns Are Normally Distributed

question 87

True/False

The APT assumes that security returns are normally distributed.

---

Definitions:

Postformal Thought

A stage in cognitive development suggesting that adults can think in ways that are more complex and flexible than what was previously described in Piaget's final stage.

Formal Operations

The final stage in Piaget's theory of cognitive development (generally from age 12 onwards), where individuals develop the ability to think abstractly, logically, and systematically.

Right Or Wrong

A moral or ethical judgement about actions or decisions, often based on societal norms, personal beliefs, or legal standards.

Achieving Stage

The point reached by young adults in which intelligence is applied to specific situations involving the attainment of long-term goals regarding careers, family, and societal contributions.