Question
Many practitioners consider the Arbitrage Pricing Theory (APT) a superior approach to the pricing of risky assets than the Capital Asset Pricing Model (CAPM). Discuss
Many practitioners consider the Arbitrage Pricing Theory (APT) a superior approach to the pricing of risky assets than the Capital Asset Pricing Model (CAPM).
Discuss the above statement paying particular attention to the differences in the assumptions underlying the two methods.
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
12th Edition
0471675792, 9780471675792
