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Much has been written about the weaknesses of CAPM and the value of using Multifactor Models when measuring risk and returns. 1. Critically appraise CAPM,
Much has been written about the weaknesses of CAPM and the value of using Multifactor Models when measuring risk and returns.
1. Critically appraise CAPM, and Arbitrage Pricing Theory. (10 marks)
2. Appraise the benefits of using Fama and Frenchs multifactor models in practice, supporting your answer with empirical evidence where possible. (10 marks)
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