Question: 4 0 . ) The APT model differs from the CAPM model because: APT allows for additional factors such as style and size. APT models
The APT model differs from the CAPM model because:
APT allows for additional factors such as style and size.
APT models only allow for one type of risk, market risk to be incorporated.
APT models incorporate a lognormal distribution to model market returns.
APT and CAPM both use market risk to describe the assets returns.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
