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Dashboard Final Exam

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Which statement(s) below about CAPM versus multiple-factor APT is/are correct? I. CAPM could be viewed as a special one-factor APT II. APT provides guidance about the sources of risks III. APT does not specify the number of factors IV. APT provides guidance about the magnitude of factor risk premium in equilibrium

Options
A.a. I, II, and III only
B.b. I and II only
C.c. I and III only
D.d. II and III only
E.e. All of I, II, III and IV
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Question restatement: Which statement(s) below about CAPM versus multiple-factor APT is/are correct? I. CAPM could be viewed as a special one-factor APT II. APT provides guidance about the sources of risks III. APT does not specify the number of factors IV. APT provides guidance about the magnitude of factor risk premium in equilibrium Option-by-option analysis: - I. CAPM could be viewed as a special one-factor APT This is a commonly accepted view in asset pricing. The CAPM can be derived as a one-factor......Login to view full explanation

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