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 A and B are true.
E)Both A and C are true.

Question

Quizplus · Accepted Answer

Option A is true- Both APT and CAPM argue that expected excess return must be proportional to the Beta(s). 
Option B is false- there are other models to measure expected returns in risky assets. 
Option C is true - Both CAPM and APT are risk-based models. 
Therefore, the correct answer is E - Both A and C are true.

Which of the Following Statements Is/are True