What are the major strengths and weaknesses of the APT in relation to the CAPM?
Question:
What are the major strengths and weaknesses of the APT in relation to the CAPM?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
The Arbitrage Pricing Theory APT and the Capital Asset Pricing Model CAPM are two prominent models u...View the full answer
Answered By
Lamya S
Highly creative, resourceful and dedicated High School Teacher with a good fluency in English (IELTS- 7.5 band scorer) and an excellent record of successful classroom presentations.
I have more than 2 years experience in tutoring students especially by using my note making strategies.
Especially adept at teaching methods of business functions and management through a positive, and flexible teaching style with the willingness to work beyond the call of duty.
Committed to ongoing professional development and spreading the knowledge within myself to the blooming ones to make them fly with a colorful wing of future.
I do always believe that more than being a teacher who teaches students subjects,...i rather want to be a teacher who wants to teach students how to love learning..
Subjects i handle :
Business studies
Management studies
Operations Management
Organisational Behaviour
Change Management
Research Methodology
Strategy Management
Economics
Human Resource Management
Performance Management
Training
International Business
Business Ethics
Business Communication
Things you can expect from me :
- A clear cut answer
- A detailed conceptual way of explanation
- Simplified answer form of complex topics
- Diagrams and examples filled answers
4.90+
46+ Reviews
54+ Question Solved
Related Book For
Investment Valuation And Asset Pricing Models And Methods
ISBN: 9783031167836
1st Edition
Authors: James W. Kolari, Seppo Pynnönen
Question Posted:
Students also viewed these Business questions
-
Select an organization Unilever and write a paper in which you need to address the following questions: 1. What are the major opportunities and threats in the companys current general and specific...
-
Subject : Strategic Management in a Global Environment Safaricom: Innovative Telecom Solutions to Empower Kenyans As the largest mobile provider in Kenya, Safaricom has touched the lives of Kenyans...
-
You are designing a new syntax for a programming language like Java, with the intention of making it more approachable to students by using English words instead of punctuation symbols. (a) How does...
-
On average, which group of borrowers would have to pay a higher effective rate for its short-term loans, those who are required to put up collateral or those who are not? Explain.
-
A warehouse employs 24 workers on first shift and 17 workers on second shift. Eight workers are chosen at random to be interviewed about the work environment. Find the following probabilities. a. The...
-
Explain Java bytecodes.
-
With so much of most tasks being computerized, why bother studying about improving personal productivity? LO.1
-
Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $10,000 will be accepted. Assume that the...
-
suve EXI Chech a. Revenues of $14,000 were earned and received in cash. b. Bank loans of $4,000 were paid off. c. Equipment of $3,300 was purchased for cash. d. Expenses of $6,800 were paid. e....
-
In the single factor case, given that R i = E(R i ) + i F + i , the APT model specified as E(R i ) = 0 + i is called the exact APT model by Huberman and Wang (2017). Huberman (1982) considers...
-
In the CAPM, one of the assumptions is that investors have common (homogeneous) beliefs about the return distribution of assets. What is the common assumption about the asset return generating...
-
The trinomial 6x 2 + 7x - 20 may be factored using substitution. Replace t with 6x in the answer from Exercise 79, and simplify to obtain the correct factorization of the trinomial. Data from in...
-
As a project manager it is important to utilize the right tool at the right time. When it comes to managing quality on projects, this is no exception. Identify three 'Total Quality Tools' that you...
-
Describe 2 change models that you could use to create change in an organization. Choose 1 of the models that you think would be most successful in an organization, and analyze reasons why you chose...
-
During the current year, Rothchild, Inc., purchased two assets that are described as follows. Heavy Equipment Purchase price, $375,000. Expected to be used for 10 years, with a residual value at the...
-
Regarding the Mozilla case, assume that Communities of Practice start to arise spontaneously around topics that are related to the visualizations in the Portal at Mozilla. What do you think is the...
-
Regarding Issues That Affect Recruitment, how would you proceed as the assistant superintendent for human resources in a school district that is experiencing a shortage of qualified applicants for...
-
P Corporation has owned all the stock of S and T Corporations for several years. P sells all of Ts stock to Z Corporation during the current year. a. Does Ps sale of Ts stock cause the affiliated...
-
Suppose you won a financial literacy competition and are given FJS10000 to invest, with the condition that investment can be done either in, i) Invest in Unit trust of Fiji or Invest in Fijian...
-
A stock has had the following year-end prices and dividends: What are the arithmetic and geometric returns for the stock? Year Price Dividend $13.25 $0.15 15.61 16.72 0.18 15.18 0.20 4 17.12 0.24...
-
You are given the returns for the following three stocks: Calculate the arithmetic return, geometric return, and standard deviation for each stock. Do you notice anything about the relationship...
-
Suppose that an investor opens an account by investing $1,000. At the beginning of each of the next four years, he deposits an additional $1,000 each year, and he then liquidates the account at the...
-
Consider a 5 year debt with a 15% coupon rate paid semi-annually, redeemable at Php1,000 par. The bond is selling at 90%. The flotation cost is Php50 per bind. The firm's tax bracket is 30%.
-
A project will generate annual cash flows of $237,600 for each of the next three years, and a cash flow of $274,800 during the fourth year. The initial cost of the project is $749,600. What is the...
-
You want to invest annual amounts over the next 15 years. If your goal is to have $15,000 at the end of that time and if you can earn 8 percent on your invested funds, how much do you need to invest...
Study smarter with the SolutionInn App