Question: What is the underlying assumption in any APT model? The alpha of a risky portfolio must be greater than zero Persistent outperformance must be due

What is the underlying assumption in any APT model? The alpha of a risky portfolio must be greater than zero Persistent outperformance must be due to bearing a priced risk All assets in the market portfolio are available for investment All investors have the same view of the expected returns and standard deviations of all assets There is only a single risk factor

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