The Most Significant Conceptual Difference Between the Arbitrage Pricing Theory

question 58

Multiple Choice

The most significant conceptual difference between the arbitrage pricing theory (APT) and the capital asset pricing model (CAPM) is that the CAPM ________.

• A)places less emphasis on market risk
• B)recognises multiple unsystematic risk factors
• C)recognises only one systematic risk factor
• D)recognises multiple systematic risk factors

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