Description
Topic 2: The Asset Pricing Model
Research and define Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT). How are they the same and how are they different?
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Running head: THE ASSET PRICING MODEL
The Asset Pricing Model
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THE ASSET PRICING MODEL
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The Asset Pricing Model
The capital asset pricing model
The Capital asset pricing model describes the relationship between the rate of return and
the systematic risk of an asset. In the field of finance, it is used to price risky securities in a
company and the generation of their expected returns. According to the model, the v...
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