What are the advantages of the apt model

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What are the advantages of the APT model relative to the CAPM? What are the difficulties of applying the arbitrage pricing theory model in practice? Indicate why you agree or disagree with the following statements:

a. "As a percentage of the total risk, the unsystematic risk of a diversi- fied portfolio is greater than that of an individual asset."

b. "An investor should be compensated for accepting unsystematic risk."

Reference no: EM131312981

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