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Please explain these following three assumptions of Arbitrage portfolio theory (APT) 2-3 sentences for every point. Thank you in advance! What are the assumptions behind

Please explain these following three assumptions of Arbitrage portfolio theory (APT) 2-3 sentences for every point. Thank you in advance! What are the assumptions behind Arbitrage Pricing Theory? Explain them.

1. Capital markets are perfectly competitive. Securities or portfolios

2. Investors always prefer more to less wealth.

3. Price-generating process is a K factor model

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