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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Which of the following statements about Arbitrage Pricing Theory (APT) and the Capital Asset Pricing Model (CAPM) is FALSE?
|
A) |
APT can equal CAPM. |
|
B) |
In both the APT and the CAPM, the risk-free rate is added to a premium for risk factor (X) and the responsiveness of the asset's returns to factor (X). |
|
C) |
If zero-investment arbitrage does not hold, the APT does not hold. |
|
D) |
APT is a multi-factored model with restrictive assumptions. |
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