Investments, 11th Edition (exclude Access Card)
Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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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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