To date, the results of empirical tests of the Arbitrage Pricing Model have been
A) clearly favorable.
B) clearly unfavorable.
C) mixed.
D) unavailable.
E) biased.

Question

Quizplus · Accepted Answer

The results of empirical tests of the Arbitrage Pricing Model have been mixed. Some studies have supported the model, while others have found it to be unreliable or inconsistent with market behavior. Therefore, the best choice is C as none of the options suggest a clear positive or negative outcome.

To Date, the Results of Empirical Tests of the Arbitrage