 | Chapter Overview
(See related pages)
After studying this chapter you should be able to:- Use the implications of capital market theory to compute security risk premiums.
- Construct and use the security market line.
- Specify and use a multifactor security market line.
- Take advantage of an arbitrage opportunity with a portfolio that includes mispriced securities.
- Use arbitrage pricing theory with more than one factor to identify mispriced securities.
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