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Basic Question 1 of 11

Which pricing model provides no guidance concerning the determination of the risk premium on factor portfolios?

A. Multifactor APT
B. CAPM
C. SML
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User Contributed Comments 1

User Comment
alyl21 APT don identify risk factors
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe arbitrage pricing theory (APT), including its underlying assumptions and its relation to multifactor models;

define arbitrage opportunity and determine whether an arbitrage opportunity exists;

calculate the expected return on an asset given an asset's factor sensitivities and the factor risk premiums;

CFA® 2025 Level II Curriculum, Volume 5, Module 40.