An <span>incompressible fluid is a fluid that retains the same density and volume regardless of any amount of pressure placed on it; it is not compressible at all. </span>
Answer: Use of several factors instead of a single market index to explain the risk-return relationship
Explanation:
Arbitrage pricing theory (APT) is when the return on an asset is forecasted when the linear relationship which exist between the expected return of the asset and the macroeconomic variables are being considered.
Capital Asset Pricing Model (CAPM) helps in showing the relationship that take place between systematic risk and an asset expected return.
The feature of the general version of the arbitrage pricing theory (APT) that offers the greatest potential advantage over the simple CAPM is the use of several factors instead of a single market index to explain the risk-return relationship as it's more robust when compared to the CAPM.
An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country.
