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Discuss how asset pricing models can be applied in an international equity context. Theory Define the CAPM, F&F, Carhart four factor and Five factor model

Discuss how asset pricing models can be applied in an international equity context.

Theory Define the CAPM, F&F, Carhart four factor and Five factor model 50%
Application Using capm as an example show its application in the international finance area 30%
Limitations Identify the problem of market cointegration and spillover effects 20%

Reference: Read page 466 to 488.

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