EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 10, Problem 1CP
Summary Introduction

To select: Comparison between APT and CAPM.

Introduction : Both models are used for the pricing of the assets. When the market is not in equilibrium condition these models are used. APT uses many factors for the assumptions of the return but CAPM model uses only specific factors for the return values.

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