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What is Arbitrage Pricing Theory (APT)? How is APT different from the CAPM? If we conclude that the market is inefficient (to varying degrees), are

    1. What is Arbitrage Pricing Theory (APT)?
    2. How is APT different from the CAPM?
    3. If we conclude that the market is inefficient (to varying degrees), are asset pricing models still useful? Explain.

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