Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
11 - An important difference between CAPM and APT is a) None of the options is true. b) CAPM depends on risk-return dominance; APT depends on a no-arbitrage condition. c) risk is not quantified in CAPM. d) implications for prices derived from CAPM arguments are stronger than prices derived from APT arguments. e) All of the options are true.
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Transcribed Image Text:11 - An important difference between CAPM and APT is a) None of the options is true. b) CAPM depends on risk-return dominance; APT depends on a no-arbitrage condition. c) risk is not quantified in CAPM. d) implications for prices derived from CAPM arguments are stronger than prices derived from APT arguments. e) All of the options are true.
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