CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

If there is only one factor (market risk) in an APT mode, APT then equals ______.

A. CAPM
B. SML
C. CML
Correct Answer: A

APT does not identify the risk factors to be included in the model. If the market risk is used as the only factor, the APT would equal CAPM.

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