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Which of the following is NOT a similarity between the Capital Asset Pricing Model and the Arbitrage Pricing Model?A . Both assume perfect markets.B .
Which of the following is NOT a similarity between the Capital Asset Pricing Model and the Arbitrage Pricing Model?ABoth assume perfect markets.BBoth models are linear in the risk factorsCBoth models assume that the same set of risk factors affect the returns on all stocks.DBoth models rest on the assumption that the market portfolio is meanvariance efficient.
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