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Commerce · Q198

Business Finance

Graduate and Post Graduate · Commerce · question 198

Q198

Arbitrage pricing theory may be more suitable for a company since it is based on the assumption that returns are determined by a number of factors to which a particular risk premium is attached. These factors are

A.
Dependent factors
B.
Independent factors
Answer
C.
Internal factors
D.
Contradictory factors

Answer: Option B

Solution

Answer: Option B
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