Both the APT and the CAPM Imply a Positive Relationship

question 5

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)as the standardized deviation of the covariance.
• E)None of the above.

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Definitions:

Restorative Justice

A criminal justice system that emphasizes on rehabilitating offenders by facilitating reconciliation with victims and the broader community.

Main Criticism

The primary or most significant objection raised against a particular idea, policy, or argument.

Restorative Justice

A system of criminal justice which focuses on the rehabilitation of offenders through reconciliation with victims and the community at large.

Parties/Entities

Groups or organizations engaged in or affected by a particular action, transaction, or legal case.