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Commerce · Q331

Business Finance

Graduate and Post Graduate · Commerce · question 331

Q331

In contrast to the capital asset pricing model, arbitrage pricing theory

A.
Has fewer restrictive assumptions
Answer
B.
Uses risk premiums based on micro variables
C.
Specifies the number and identities of specific factors that determine expected returns
D.
Requires normally distributed security returns

Answer: Option A

Solution

Answer: Option A
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