Which Pricing Model Provides No Guidance Concerning the Determination of the Risk

question 22

Multiple Choice

Which pricing model provides no guidance concerning the determination of the risk premium on factor portfolios?

• A) The CAPM
• B) The multifactor APT
• C) Both the CAPM and the multifactor APT
• D) Neither the CAPM nor the multifactor APT
• E) None of the options are correct.

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