The arbitrage pricing theory (APT) differs from the single-factor capital asset pricing model (CAPM) because the APT:

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The arbitrage pricing theory (APT) differs from the single-factor capital asset pricing model
(CAPM) because the APT:
a. Places more emphasis on market risk.
b. Minimizes the importance of diversification.
c. Recognizes multiple unsystematic risk factors.
d. Recognizes multiple systematic risk factors.

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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