In contrast to the CAPM, the APT does not indicate which factors are expected to determine the
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In contrast to the CAPM, the APT does not indicate which factors are expected to determine the risk premium of an asset. How can we determine which factors should be included? For example, one risk factor suggested is the company size. Why might this be an important risk factor in an APT model?
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The fact that APT does not give any guidance about the factors that influence ...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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