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Basic Question 11 of 11
Which statement is false?
B. The APT makes the same assumptions as the CAPM.
C. The APT does not assume the market portfolio.
A. The APT does not indicate the number of risk factors.
B. The APT makes the same assumptions as the CAPM.
C. The APT does not assume the market portfolio.
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Edward Liu
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.