Question: The arbitrage pricing theory ( APT ) is based on the following key propositions: Security returns can be described by a factor model. There are

The arbitrage pricing theory (APT) is based on the following key propositions:
Security returns can be described by a factor model.
There are sufficient securities to diversify away idiosyncratic risk.
Well-functioning security markets do not allow arbitrage opportunities to persist.
True
False
The arbitrage pricing theory (APT) is based on the following key

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