Unlike the Capital Asset Pricing Model, the Arbitrage Pricing Theory

Multiple Choice

Unlike the capital asset pricing model, the arbitrage pricing theory requires only the following assumption(s) :

A) A quadratic utility function.
B) Normally distributed returns.
C) The stochastic process generating asset returns can be represented by a factor model.
D) A mean-variance efficient market portfolio consisting of all risky assets.
E) All of the above