Like the CAPM, the APT assumes borrowing and lending can be done at the risk-free rate.

Name: Like the CAPM, the APT assumes borrowing and lending can be done at the risk-free rate.
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The Arbitrage Pricing Theory (APT) does not necessarily assume that borrowing and lending can be done at the risk-free rate, unlike the Capital Asset Pricing Model (CAPM) which explicitly makes this assumption. APT focuses on multiple factors affecting returns, not just market risk.

Like the CAPM, the APT Assumes Borrowing and Lending Can