Question: Explain the differences and similarities between CAPM and APT. In your explanations, you should cover at least the following aspects: i) assumptions, ii) mechanisms to
Explain the differences and similarities between CAPM and APT. In your explanations, you should cover at least the following aspects: i) assumptions, ii) mechanisms to keep the securities market in equilibrium, iii) conclusion of each theory, and iv) practical implications (or applications) to the real market. (There is a word limit of 400 words.)
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