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Carefully explain the Arbitrage Pricing Theory (APT). What is the main assumption the APT is built on?                                                  (b)     With regard to market efficiency, what is meant by the term "anomaly"? Give two examples of market anomalies and explain why each is considered as an anomaly.

Carefully explain the Arbitrage Pricing Theory (APT). What is the main assumption the APT is built on?                                                  (b)     With regard to market efficiency, what is meant by the term "anomaly"? Give two examples of market anomalies and explain why each is considered as an anomaly.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Carefully explain the Arbitrage Pricing Theory (APT). What is the main assumption the APT is built on?                                           

 

 

 

(b)     With regard to market efficiency, what is meant by the term "anomaly"? Give two examples of market anomalies and explain why each is considered as an anomaly.

 

 

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