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Which of the following must be done to test the multifactor CAPM or the APT? 1. 1) Specify the risk factors 2. II) Identify portfolios
Which of the following must be done to test the multifactor CAPM or the APT? 1. 1) Specify the risk factors 2. II) Identify portfolios that hedge the risk factors 3. III) Test the explanatory power of hedge portfolios 4. IV) Test the risk premiums of hedge portfolios I, II, and IV I and II I, II, III, and IV II and IV II and
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