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When we studied standard CAPM, we learned that CAPM requires (and assumes) that investors are risk averse. That is, they require compensation for taking risk.

When we studied standard CAPM, we learned that CAPM requires (and assumes) that investors are risk averse. That is, they require compensation for taking risk. Please discuss what does APT (Arbitrage Pricing Theory) say about this (about risk aversion)?

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