What are the fundamental principles underlying the apt model

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Why is the CAPM's assumption that investors can borrow and lend at the risk-free rate questionable? What is meant by the "homogeneous assumption" in the CAPM? What is meant by the law of one price, and what does it imply about a package of securities and a given security that have the same payoff? What are the fundamental principles underlying the APT model?

Reference no: EM131288712

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