What are the strengths and weaknesses of the apt as a theory

Reference no: EM13923960

• What are the deficiencies of the capital asset pricing model (CAPM) as an explanation of the relationship between risk and expected asset returns?

• What is the arbitrage pricing theory (APT) and how is it similar and different from the CAPM?

• What are the strengths and weaknesses of the APT as a theory of how risk and expected return are related?

Reference no: EM13923960

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