Question: 15. The most significant conceptual differenc between the arbitrage pricing theory (i.e. APT or factor model) and the capital asset pricing model (CAPM) is that

15. The most significant conceptual differenc between the arbitrage pricing theory

15. The most significant conceptual differenc between the arbitrage pricing theory (i.e. APT or factor model) and the capital asset pricing model (CAPM) is that APT A. does not consider stock sensitive to the market risk B. recognizes that there can be firm specific risk factors C. suggests that all stock returns are perfectly predictable if you know Beta coefficient D. ignores residuals

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