Cho,Elton,and Gruber tested the APT by examining the number of factors in the return generating process and found that
A) Five factors were required using Roll-Ross procedures.
B) Six factors were present when using historical beta.
C) Fundamental betas indicated a need for three factors.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

The question states that Cho, Elton, and Gruber tested the APT using different procedures and found varying results on the number of factors required or present, which are outlined in options A, B, and C. Therefore, the correct answer is D, which includes all the options as correct.

Cho,Elton,and Gruber Tested the APT by Examining the Number of Factors