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Basic Question 10 of 11

Which is (are) multi-factor model(s)?

I. Markowitz Modern Portfolio Theory (MPT)
II. Capital Market Pricing Model (CAPM)
III. Arbitrage Price Theory (APT)

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I used your notes and passed ... highly recommended!
Lauren

Lauren

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.