Question: Is the following statement true or false, if false, please explain. Like the CAPM model, the APT model is also based on the premise that
Is the following statement true or false, if false, please explain.
Like the CAPM model, the APT model is also based on the premise that the total risk of an asset's returns can be decomposed into systematic and unsystematic risks.
(From the textbook it says common risk & firm-specific risk, are those the equivalents or not?)
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