Question: What is the main difference between the CAPM and the APT? A ) The CAPM assumes that only one systematic risk factor affects asset returns,
What is the main difference between the CAPM and the APT?
A The CAPM assumes that only one systematic risk factor affects asset returns, while the APT allows for multiple systematic risk factors.
B The APT is a singlefactor model, while the CAPM is a multifactor model.
C The CAPM considers both systematic and unsystematic risk, while the APT only considers systematic risk.
D The APT is a static model, while the CAPM is a dynamic model.
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