1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Irina18 [472]
3 years ago
7

The most significant conceptual difference between the arbitrage pricing theory (i.e. APT or factor model) and the capital asset

pricing model (CAPM) is that APT _____________.
a. places less emphasis on market risk
b. recognizes multiple unsystematic risk factors
c. recognizes only one systematic risk factor
d. recognizes multiple systematic risk factors
Business
1 answer:
AysviL [449]3 years ago
8 0

Answer:

Option C: Recognizes only one systematic risk factor

Explanation:

Arbitrage pricing theory (APT) is a theory of risk-return relationships gotten from no-arbitrage and considerations in large capital markets

APT was said to be developed by Steve Ross, 1976 and it uses "No-Arbitrage" Assumption. It was designed mainly to provide "economic" variables to the determination of asset pricing.

capital asset pricing model (CAPM) is simply a model that shows the required rate of return on a security to its systematic risk as taken up or measured by beta.

You might be interested in
If jane brown closes her account at the first national bank and uses the money instead to open a money market mutual fund​ accou
soldi70 [24.7K]
On the off chance that Jane Brown shuts her record at the First National Bank promotion utilizes the cash rather to open a currency showcase common reserve account the M1 does not change in light of the fact that the assets that go to the currency advertise shared store are initially saved into the common reserve's ledger.
3 0
3 years ago
A client with a diagnosis of colon cancer has required the creation of an ostomy following bowel surgery. What factor is most li
vladimir1956 [14]

Answer:

(B) The coping mechanisms that the client possesses.

Explanation:

Coping mechanisms are the ways a person manages stress. They are strategies that are usually used in the face of stress and/or trauma to help manage, and adapt to painful or difficult emotions. They are different classifications of coping mechanisms. We have the defence, the attack, the avoidance and the adaptive. Coping mechanisms can help people adjust to stressful events while helping them maintain their emotional condition.

8 0
4 years ago
Liability to pay only under certain conditions is what
bija089 [108]
Liability insurance or legal liability
4 0
4 years ago
a) Take a real time example of a company of your own choice working in Pakistan and then discuss the factors that lead to pressu
RUDIKE [14]

Answer:

This responsiveness also promotes the local market orientation of a subsidiary and therefore the strength of its existing network with the businessmen and government authorities.

Explanation:

Usually, firms working within the global market confront two sorts of competitive pressure. They face pressure to scale back costs and pressure to react locally. These competing forces throw a corporation into conflict. It's going to also need a corporation to supply a consistent product on the international market to downstream the experience curve as soon as feasible. In response to local pressures, however, it's necessary for a firm to differentiate its product offering and marketing strategy from one country to a different in an effort to satisfy the various demands arising from domestic consumer preferences, business practices, channels of distribution, competitive conditions and public policies. Because it's going to entail substantial redundancy and a scarcity of product standards to adapt products to varied domestic needs, the result could also be a rise in prices.

While some organizations, like Company A, face a high to scale back cost and low for the reaction of locally, while others, like Company B, face low to scale back costs and high for local reaction, many companies are within the situation of Company C.  It suggests and supports three layers of variables, including environmental, structural, and organizational responsiveness. The analysis of 168 MNE companies within the People's Republic of China shows that environmental complexity and therefore the uniqueness of business culture increase local reaction. Structural variables like the intensity of competition, heterogeneity of demand and localisation of components increase local reaction.

3 0
3 years ago
Recent regulation such as the Riegle-Neal Act of 1994 has removed some of the federal banking laws that formerly constrained pro
PIT_PIT [208]

Answer:

The correct answer is diversify geographically.

Explanation:

Diversification is one of the strategies most used by companies when it comes to expanding their market horizon. In this sense, diversifying is synonymous with expansion, growth, investment and openness.

In general, companies that are committed to diversification seek new market niches or commercial possibilities. This may be motivated by several reasons, ranging from corporate growth opportunities to the implementation of internal restructuring plans.

7 0
3 years ago
Other questions:
  • Suppose that when the price of good X falls from $10 to $8, the quantity demanded of good Y rises from 20 units to 25 units.
    14·1 answer
  • Rowdy's Restaurants cash flow ($ in millions)
    9·1 answer
  • Which one component in a high-end gaming computer is likely to draw the most power?
    7·1 answer
  • A buyer got a 30 year loan with a loan balance of $65,000 with an interest rate of 10% and a factor of 8.78. What will be the bo
    10·1 answer
  • On December 30, Year 3, Ames Co. leased equipment under a finance lease for 10 years. It contracted to pay $40,000 annual rent o
    10·1 answer
  • If your company increases its market penetration, what is happening?
    15·1 answer
  • Buatlah Jurnal Penyesuaian dan Jurnal Pembalik dari:
    10·1 answer
  • John Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below th
    9·1 answer
  • Viral promotion involves: Group of answer choices offering rebates and incentives to customers for adopting a product or service
    14·1 answer
  • The size, sign, and timing of individual cash flows are illustrated by the ____________________, as the basis for engineering ec
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!