How superior investment performance can be established

Reference no: EM13279525

Both the capital asset pricing model and the arbitrage pricing theory rely on the proposition that a no-risk, no wealth investment should earn, on average, no return. Explain why this should be the case, being sure to describe the similarities and differences between the CAPM and APT. Also, using these theories, explain how superior investment performance can be established.

Reference no: EM13279525

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