The general arbitrage pricing theory (APT) differs from the single-factor capital asset pricing model (CAPM) because it:
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The general arbitrage pricing theory (APT) differs from the single-factor capital asset pricing model (CAPM) because it:
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.
P-69
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Related Book For
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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