Empirical Tests of the APT Model Have Found That as the Size

question 66

True/False

Empirical tests of the APT model have found that as the size of a portfolio increased, so did the number of factors.

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Definitions:

Empiricism

The philosophical perspective that knowledge comes primarily from sensory experience and observation.

Operant Conditioning

Skinner’s term for the process of learning in which an organism’s behavior is shaped by the effect of the behavior on the environment.

Respondent Conditioning

Skinner’s term for classical conditioning.

Habituation

The process of becoming accustomed to a stimulus or environment, resulting in a decreased response over time.