The arbitrage pricing theory (APT)implies that the market portfolio is efficient.

Name: The arbitrage pricing theory (APT)implies that the market portfolio is efficient.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

The APT suggests that an asset's return can be explained by several factors rather than just one, and that mispricings based on these factors can be exploited for profit. It does not necessarily imply that the market portfolio is efficient, as there may still be opportunities for profitable trades based on these factors.

The Arbitrage Pricing Theory (APT)implies That the Market Portfolio Is