Which One of the Following Statements Is True

Multiple Choice

Which one of the following statements is 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 quantitative approaches to measure expected returns in risky assets.
C) The factors to be used in the APT are easier to identify than the factor used in the CAPM.
D) CAPM provides the means for a more-detailed estimate of a security's expected return than does APT.
E) CAPM assigns a beta of 1 to the market while APT assigns the market a beta of zero.