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In contrast to the capital asset pricing model, arbitrage pricing theory: Requires that markets to be in equilibrium Uses risk premiums based on macro variables
- In contrast to the capital asset pricing model, arbitrage pricing theory:
- Requires that markets to be in equilibrium
- Uses risk premiums based on macro variables
- Specifies the number and identifies specific factors that determine expected returns
- Requires restrictive assumptions concerning the market portfolio
- None of the above
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Accounting for Non-Accounting Students
Authors: John R. Dyson
8th Edition
273722972, 978-0273722977
