Q. Which of the following assumptions is common between the pricing models of CAPM and APT? (Solved)
1. A single period investment horizon
2. The investors can freely borrow and lend at risk-free rate
3. The investors select portfolios based on expected mean and variance of return
4. Investors have homogeneous expectations and are expected-utility-of-wealth maximizers.
- d. Investors have homogeneous expectations and are expected-utility-of-wealth maximizers.