Question: The major conceptual difference between the arbitrage pricing theory (APT) and the capital asset pricing model (CAPM) is that: A.) APT can include multiple factors
The major conceptual difference between the arbitrage pricing theory (APT) and the capital asset pricing model (CAPM) is that:
A.) APT can include multiple factors
B.) CAPM cannot be used to measure past performance
C.) CAPM can include multiple factors
D.) APT places all the emphasis on the market risk
E.) APT recognizes only one systematic risk factor
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
