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If a multi-factor model is said to perfectly price all assets, which of the following is true a) the alphas for each individual asset will
If a multi-factor model is said to perfectly price all assets, which of the following is true
a) the alphas for each individual asset will be zero
b) the predicted alphas for each asset will be positive
c) the predicted alphas for each asset will be negative
d) the R-squared for the model will be zero
e) at least one factor beta must be zero
f) none of these are true
g) all of these are true
h) there will be no arbitrage opportunities in the market
i) one of the factors must be the market factor
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