Question
9. One main defect (i.e., weakness) of the arbitrage pricing theory (APT) is? A) its use of several factors instead of a single market index
9. One main defect (i.e., weakness) of the arbitrage pricing theory (APT) is?
A) its use of several factors instead of a single market index to explain the risk-return relationship
B) that the APT requires an even larger number of unrealistic assumptions than the CAPM
C) the model fails to identify the key risk factors in the risk-return relationship
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
