Question: Why were APT and Multi-Factor models developed? Because Modern Portfolio Theory was an old theory and the market needed more robustness Because CAPM was only

Why were APT and Multi-Factor models developed?

Because Modern Portfolio Theory was an "old theory" and the market needed more robustness

Because CAPM was only based on one systematic factor to explain returns

Because Ken French wanted to setup a website with lots of data

Because returns were based solely on idiosyncratic risk

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