What are the main differences between the Capital Asset Pricing Model (CAPM) and the Arbitrage Pricing Theory (APT) model? What are each model’s underlying assumptions, strengths and weaknesses?

What’s the difference between primary markets and secondary markets?

Briefly discuss the differences between Modigliani and Miller’s theory of capital structure and the trade-off theory in terms of assumptions and results.

how was capital asset pricing model (CAPM) created? GIVE reference

How can I explain the rationale behind the Arbitrage Pricing Theory (APT) model, and discuss its empirical evidence that tests its validity.

The level of the Syldavian market index is 21,600 at the start of the year and 26,100 at the end. The dividend yield on the index is 4.3%.   a. What is the return on the index over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)           b. If the interest rate is 5%, what is the risk premium over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)           c. If the inflation rate is 7%, what is the real return on the index over the year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Define the term capital rationing.

Discuss the key assumptions of Arbitrage Pricing Theory (APT) model and the implications of these assumptions.

What is the financial meaning of each parameters and variables of the Arbitrage Pricing Theory model

Describe the rules and discuss the main disadvantages of the following models:   Asset Based Valuations  Method of Comparables  Dividend Discount Model