Which One of the Following Is Not a Significant Difference

question 30

Multiple Choice

Which one of the following is not a significant difference between the APT and the CAPM model?

• A) APT is a much less restrictive asset pricing model
• B) CAPM is an equilibrium model while the APT is not
• C) The APT has weaker assumptions about investor preferences
• D) APT assumes returns are generated by a factor model while the CAPM makes no reference to the underlying return generating process

Understand the significance of sample size and randomness in achieving representative samples.

Grasp the concept of operational definitions in scientific research.

Recognize the importance of falsifiability and replicability in the scientific theory and empirical research.

Understand the distinctions between dependent and independent variables in experimental research.

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