CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

A similarity between the APT and CAPM model is that both models assume that ______.
A. their unique effects are independent and will not be diversified away in a large portfolio.
B. their unique effects are dependent and will be diversified away in a large portfolio.
C. their unique effects are independent and will be diversified away in a large portfolio.

User Contributed Comments 2

User Comment
dblueroom unique effects refers to asset specific risks.
CFAJ thank you
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