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Multiple Choice: Which of the following is true for APT, but not for CAPM: A. Requirement that markets be in equilibrium B. Factor risk premiums

Multiple Choice: Which of the following is true for APT, but not for CAPM:

A. Requirement that markets be in equilibrium

B. Factor risk premiums based on macro- economic variables

C. Specified the exact number of and identifies specific factors that determine expected returns

D. Does not require the restrictive assumption concerning investors' risk preferences

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