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This is a True / False question. Please explain the reason. Question 5: Suppose that Arbitrage Pricing Theory (APT) holds, and that the true model

image text in transcribed This is a True / False question. Please explain the reason.

Question 5: Suppose that Arbitrage Pricing Theory (APT) holds, and that the true model of the world is one with k factors. In order to form tracking portfolios, we need at least K-1 securities. Explain the reason behind your answer in detail

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