APT In contrast to the CAPM, the APT does not indicate which factors are expected to determine

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APT In contrast to the CAPM, the APT does not indicate which factors are expected to determine the risk premium of an asset. How can we determine which factors should be included?

For example, one risk factor suggested is the company size. Why might this be an important risk factor in an APT model? LO.1

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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Question Posted: Jul 31, 2024 11:01 AM

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APT In contrast to the CAPM, the APT does not indicate which factors are expected to determine

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Corporate Finance

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