CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

Compared to APT, the drawback of the CAPM is that it ______.
A. ignores the return on the market portfolio.
B. requires a single measure of systematic risk.
C. ignores risk-free return.
Explanation: Compared to the CAPM, APT is a broader-based theory. It states that all systematic factors may not be represented in the single market factor represented by the CAPM.

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