Question: 14.Arbitrage pricing theory (APT) models simplify the reasoning represented by the CAPM. True or False 2.The FamaFrench model is used more often than the CAPM

14.Arbitrage pricing theory (APT) models simplify the reasoning represented by the CAPM. True or False

2.The FamaFrench model is used more often than the CAPM to estimate the cost of equity. True or False

3.Macroeconomic factor models consider economic variables which affect the expected future cash flows of companies to determine the appropriate discount rate. True or False

4.Negative beta for a company suggests the company will return less than the risk-free rate during a down market and return more than the risk-free rate during an up market. True or False

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