Investments, tenth edition

 9.2 

Assumptions and Extensions of the CAPM  302

Assumptions of the CAPM / Challenges and Extensions 

to the CAPM / The Zero-Beta Model / Labor Income 

and Nontraded Assets / A Multiperiod Model and Hedge 

Portfolios / A Consumption-Based CAPM / Liquidity and 

the CAPM

 9.3 

The CAPM and the Academic World  313

 9.4 

The CAPM and the Investment Industry  315

End of Chapter Material  316–323

CHAPTER 10

Arbitrage Pricing Theory and 

Multifactor Models of Risk 

and Return  324

 10.1  Multifactor Models: An Overview  325

Factor Models of Security Returns

 10.2  Arbitrage  Pricing  Theory 

327

Arbitrage, Risk Arbitrage, and Equilibrium / Well-

Diversified Portfolios / Diversification and Residual Risk 

in Practice / Executing Arbitrage / The No-Arbitrage 

Equation of the APT