Question: For a given stock, let a denote the positive alpha when APT is used as the benchmark model, and let b denote the positive alpha
For a given stock, let "a" denote the positive alpha when APT is used as the benchmark model, and let "b" denote the positive alpha when CAPM is used as the benchmark model with one of the APT factors being the Market factor. Which of the following is true?"
| a less than or equal b | ||
| a greater than or equal b | ||
| a+b=1 | ||
| None of the above |
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