What is the strong point of the apt compared with the capm

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What is the strong point of the APT compared with the CAPM? And the weak point?

Explain why an investor would be prepared to require a return lower than the risk-free rate for a share with a negative β. Anyone?

What does a reduced liquidity premium indicate?

Will liquidity premiums tend to rise or fall during a crash? Why? Anyone?

Liquidity Premiums will tend to rise, because investors will only wish to invest in liquid shares that they can sell immediately.

What is the difference between the average life and the duration of a bond? For what type of bond are the two equals?

What are the three drivers of the level of EBIT multiple?

Reference no: EM132616800

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