Which of the Below Statements Is TRUE

Multiple Choice

Which of the below statements is TRUE?

A) The APT states that the return on a security is dependent on its market sensitivity index and an unsystematic return.
B) The CAPM states that the return on a security is linearly related to H factors.
C) The APT asserts that an investor is compensated for accepting unsystematic risk
D) The APT states that investors want to be compensated for all the factors that systematically affect the return of a security.