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In what respect are APT models better than the CAPM? A. APT models have a more sound theoretical foundation B. APT models have less model
In what respect are APT models better than the CAPM?
A. APT models have a more sound theoretical foundation
B. APT models have less model risk because they are simpler
C. APT models are simpler to implement
D. APT models are forward-looking, while the CAPM is backward-looking
E. APT models are better at empirical prediction
(I think it's either D. or E., but I am unsure)
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