Additional Notes on the CAPM and the APM

The authors of the text focus on the Capital Asset Pricing Model (CAPM) but there is a newer asset pricing model called the Arbitrage Pricing Model (APM) that is gaining popularity and is considered by many to be superior to the CAPM.

The link below will take you to a set of class notes that compares the two asset pricing models.  The notes are in PDF format.

A Comparison of the CAPM and the APM