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stuck in this solve the problem SAP id 70060187 Question 1: (15) (a) Arbitrage Pricing Theory is considered as an extension of Capital Asset Pricing

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stuck in this solve the problem SAP id 70060187

Question 1: (15) (a) Arbitrage Pricing Theory is considered as an extension of Capital Asset Pricing Model. Discuss and also compare and contrast the APT and CAPM. What are "factor loadings" and why they are important in the APT? (b) Consider the following information about two stocks (P and Q) and two common risk factors (I and

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