Which of the Following Is True of the Comparison Between

question 2

Multiple Choice

Which of the following is true of the comparison between CAPM and APT models?

• A)In contrast to the CAPM,the APT model allows for the possibility that investors hold the same exact portfolios.
• B)In contrast to the APT model,the CAPM assumes that there are no arbitraging opportunities.
• C)Compared to the APT model,the CAPM is a complex method to estimate the expected returns.
• D)Both models assume that the markets are frictionless.

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Definitions:

Certain Date

A specific, identified day in the calendar on which an event is scheduled to take place or a deadline is set.

Waste Product

Any unwanted or unusable material produced during a manufacturing process, which is often discarded or recycled.

Factory Setting

An industrial environment equipped for manufacturing goods, including facilities such as production lines and machinery.

Manufacturing Process

The series of operations involved in the production of goods, typically involving material, machinery, and labor.