Question: Compare the CAPM with the Multifactor Arbitrage Pricing Theory (APT hereafter) Model. [15 marks] (c) What are the main shortcomings of the Multifactor APT models?

Compare the CAPM with the Multifactor Arbitrage Pricing Theory (APT hereafter) Model.
[15 marks]
(c) What are the main shortcomings of the Multifactor APT models? What the research has proposed to overcome these drawbacks? Discuss fully.

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