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Cfa examination level ii the arbitrage pricing theory

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CFA Examination Level II The arbitrage pricing theory (APT) and the capital asset pricing model (CAPM) have received much attention from practitioners and academicians for use in asset pricing and valuation. a. Explain the difference between APT and the CAPM with respect to: (1) investor utility functions (2) distribution of returns (3) the market portfolio b Explain one conceptual difference between the APT and the CAPM other than those listed in Part a.

Reference no: EM133003124

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