Which of the Following Statements Is/are True

question 3

Multiple Choice

Which of the following statements is/are true?

• A) Both APT and CAPM argue that expected excess return must be proportional to the beta(s).
• B) APT and CAPM are the only approaches to measure expected returns in risky assets.
• C) Both CAPM and APT are risk-based models.
• D) Both APT and CAPM argue that expected excess return must be proportional to the beta(s); and APT and CAPM are the only approaches to measure expected returns in risky assets.
• E) Both APT and CAPM argue that expected excess return must be proportional to the beta(s); and Both CAPM and APT are risk-based models.

---

Definitions:

[H+]

A notation representing the concentration of hydrogen ions in solution, often used in the context of acidity or pH levels.

K

Symbol for Potassium, a chemical element with atomic number 19, essential for various bodily functions including nerve signal transmission and muscle contraction.

[HCO3-]

Bicarbonate ion, a base often involved in maintaining pH balance in biological systems.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values typically ranging from 0 (acidic) to 14 (basic).