Explain the Conceptual Differences in the Theoretical Development of the CAPM

question 44

Essay

Explain the conceptual differences in the theoretical development of the CAPM and APT.

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Definitions:

Property Plant and Equipment

Long-term tangible assets held for use in the production or supply of goods or services, or for rental to others.

Consolidation

The act of merging various elements, especially financial accounts from different entities, into a comprehensive aggregate for reporting purposes.

Cum-dividend Basis

A way of pricing shares where the buyer is entitled to receive a declared dividend, as the purchase is made before the ex-dividend date.

Dividend

A payout made by a corporation to its shareholders, usually as a distribution of profits.