Question: 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.

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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