HelloThere are to explanation quesiton. Can you help me to understance the difference betwen APT and CAPM and the empirical finding when testing for CAPM. PROBLEM 5 [INVESTMENTS]The investor considers using alternative asset pricing models, for instance the Capital Asset PricingModel (CAPM).5. Explain to the investor what the main differences between the APT and the CAPM are.6. What are the empirical findings when testing the applicability of the CAPM?

Difference between CAPM and APT- Capital Asset Pricing Model (CAPM) allows investors to quantify…

Answered: 5. Explain to the investor what the…

5. Explain to the investor what the main differences between the APT and the CAPM are. 6. What are the empirical findings when testing the applicability of the CAPM?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 8MC

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There are to explanation quesiton. Can you help me to understance the difference betwen APT and CAPM and the empirical finding when testing for CAPM

PROBLEM 5 [INVESTMENTS]
The investor considers using alternative asset pricing models, for instance the Capital Asset Pricing
Model (CAPM).
5. Explain to the investor what the main differences between the APT and the CAPM are.
6. What are the empirical findings when testing the applicability of the CAPM?

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