Investments, tenth edition

 10.3  The APT, the CAPM, and the Index Model  334

The APT and the CAPM / The APT and Portfolio 

Optimization in a Single-Index Market

 10.4  A  Multifactor  APT 

338

 10.5  The Fama-French (FF) Three-Factor Model  340

End of Chapter Material  342–348

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Contents

xi

CHAPTER 11

The Efficient Market Hypothesis  349

 11.1  Random Walks and the Efficient Market 

Hypothesis 350

Competition as the Source of Efficiency / Versions of the 

Efficient Market Hypothesis

 11.2  Implications of the EMH  354

Technical Analysis / Fundamental Analysis / Active 

versus Passive Portfolio Management / The Role of 

Portfolio Management in an Efficient Market / Resource 

Allocation