Which of the below statements is TRUE?
A) The APT states that the return on a security is dependent on its market sensitivity index and an unsystematic return.
B) The CAPM states that the return on a security is linearly related to H factors.
C) The APT asserts that an investor is compensated for accepting unsystematic risk
D) The APT states that investors want to be compensated for all the factors that systematically affect the return of a security.
Correct Answer:
Verified
Q21: The relevant risk of any individual security
Q22: There have been two major attacks on
Q23: The CAPM can be extended to describe
Q24: The concept of heuristics means a rule-of-thumb
Q25: Empirical studies suggest four possible economic factors
Q27: Which of the below reasons is NOT
Q28: The index of the sensitivity of a
Q29: In the multifactor CAPM, besides investing in
Q30: Themes of behavioral finance asset include:
1: Investors
Q31: _ postulates that a security's expected return
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