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(Solved): Q3 (25 Marks) a) Explain and discuss the three key propositions that Arbitrage Pricing Theory (APT) ...



Q3 (25 Marks) a) Explain and discuss the three key propositions that Arbitrage Pricing Theory (APT) is built upon and their significance (12 marks) b) Is the statement right or wrong "Generality is both strength and weakness of APT."? Explain. (13 marks)



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