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you can choose more than one correct option. please look carefully at the 5 options. thank you! Which of the following statements apply to Arbitrage
you can choose more than one correct option. please look carefully at the 5 options. thank you!
Which of the following statements apply to Arbitrage Pricing Theory (APT)? Assets with identical systematic risks must have identical expected rates of return. One of the beauties of APT is that it releases a lot of assumptions restricted in CAPM. Capital markets are perfectly efficient, and all the market participants are rational Capital markets can immediately rule out all the arbitrage opportunities. Securities with the same firm-specific risks should have identical expected returns Step by Step Solution
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