Problem:
The Capital Asset Pricing Model is not the only asset pricing model around. One of the competing approaches to asset pricing is called the Arbitrage Pricing Theory, which was developed to address some of the criticisms of the CAPM.
Write a five page paper answering the following question:
Do you think APT or the CAPM is the best approach for a financial professional to use?
Defend your answer rigorously. And don't cop out by saying "I like both approaches", take a side and defend it.