Which of the Following Is True of the Comparison Between

Multiple Choice

Which of the following is true of the comparison between CAPM and APT models?

A) In contrast to the CAPM,the APT model allows for the possibility that investors hold the same exact portfolios.
B) In contrast to the APT model,the CAPM assumes that there are no arbitraging opportunities.
C) Compared to the APT model,the CAPM is a complex method to estimate the expected returns.
D) Both models assume that the markets are frictionless.