Question: Dear tutor, Thanks for your help!! Q1) (a) Compare and contrast the advantages and limitations of the original Capital Asset Pricing Model (CAPM) to the
Dear tutor,
Thanks for your help!!
Q1) (a) Compare and contrast the advantages and limitations of the original Capital Asset Pricing Model (CAPM) to the following main alternatives asset pricing models:
- The zero-beta CAPM
- The three-moment CAPM
- The intertemporal CAPM
- The Arbitrage Pricing Theory (APT)
Support your discussion with evaluating empirical evidence and research into the main alternatives asset pricing models and contrast these conclusions with the original Capital Asset Pricing Model (CAPM) methodology.
(Intro of asset pricing models with 3 advantages each and 3 limitations each, with concluding analysis at end)
pls write in detail explanation. more than 500 words.
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