Question
In contrast to the CAPM, the APT does not indicate which factors are expected to determine the risk premium of an asset. How can we
In contrast to the CAPM, the APT does not indicate which factors are expected to determine the risk premium of an asset. How can we determine which factors should be included? For example, one risk factor suggested is the company size. Why might this be an important risk factor in an APT model? Also, what is the the relationship between the one-factor model and the CAPM?
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Personal Finance Lab Include Pearson EText
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
6th Edition
0134626575, 978-0134626574
