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Carefully explain the Arbitrage Pricing Theory (APT). What is the main assumption the APT is built on? (b) With regard to market efficiency, what is
Carefully explain the Arbitrage Pricing Theory (APT). What is the main assumption the APT is built on?
(b) With regard to market efficiency, what is meant by the term "anomaly"? Give two examples of market anomalies and explain why each is considered as an anomaly.
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