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a. If a substantial body of investors decided to exclude "sin stocks" (e.g. tobacco, armaments)...

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Finance

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a. If a substantial body of investors decided to exclude "sin stocks" (e.g. tobacco, armaments) from their portfolios, would both the Arbitrage Pricing Theory (APT) and the Capital Asset Pricing Model (CAPM) continue to hold? Explain. [6 marks)

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