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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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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