CAPM vs. APT

[johnnyblazini]

Although I find many of the assumptions in the CAPM model suspect, it’s actually a model.
The APT seems like it’s just a format for looking at stock picks and returns… I don’t doubt the usefulness of this framework, but calling it a model seems like an exageration…
Thoughts?

 

[JoeyDVivre]

It’s not a model because the factors aren’t specified? It’s actually a pretty deep insight, though it is usually just presented as this broader but unspecified CAPM.

 

[johnnyblazini]

So, let me first disclose that I am no expert in portfolio theory. My problem isn’t that the factors aren’t specified, but that this “model” really just looks like a linear equation…
Joey, could you tell me what you find so insightful about this model? It seems pretty obvious to me, but then again, I feel like I am missing something…
I can’t even see the difference(s) between the APT and Multifactors, even though Scheweser makes a clear point that there are differences…
Thanks.