Which of the following is true of the comparison between CAPM and APT models?
A) In contrast to the CAPM,the APT model allows for the possibility that investors hold the same exact portfolios.
B) In contrast to the APT model,the CAPM assumes that there are no arbitraging opportunities.
C) Compared to the APT model,the CAPM is a complex method to estimate the expected returns.
D) Both models assume that the markets are frictionless.
Correct Answer:
Verified
Q9: Which of the following is true
Q10: If equity A's beta on the inflation
Q11: Factor analysis:
A)uses macroeconomic time-series that capture changes
Q12: The unsystematic risk is:
A)the portion of return
Q13: Which of the following is true of
Q14: Which of the following is true of
Q15: Explain the factor analysis to generate factor
Q16: Which of the following is an empirical
Q18: A financial analyst is estimating factor beta
Q19: The statistic used in the regression equation,R-squared:
A)represents
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