APT In contrast to the CAPM the APT does not indicate which factors are

Apt in contrast to the capm the apt does not indicate

This preview shows page 1 out of 1 page.

1. APT: In contrast to the CAPM, the APT does not indicate which factors are expected todetermine the risk premium of an asset. How can we determine which factors should beincluded? For example, one risk factor suggested is the company size. Why might this be animportant risk factor in an APT model?
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes