Multifactor pricing models such as Fama and French's three factor model, or the Arbitrage Pricing Theory are considered in predicting expected returns of an investment compared with the Capital Asset pricing Model because superior; the Capital Asset pricing Model assumes an efficient market similar; both models are affected by assumptions that are not realistic and cannot be used in the real world. inferior; Multi-factor models have no theoretical framework while CAPM has a sound theoretical framework. superior; an increased number of factors are better able to measure the sensitivity of the investment against each factor. superior; the Capital Asset Pricing Model uses a single factor that is difficult to construct in the real world