8.6. [2-S03:31) Which of the following are advantages of Arbitrage Pricing Theory (APT) over the Capital Asset Pricing Model? I. APT does not need a market portfolio. II. The risk factors are dictated by the design of APT. III. APT has a simpler mathematical structure. (A) I only (B) II only (C) I and II only (D) I and III only (E) II and III only 8.9. [2-F00:7] Which of the following statements about Arbitrage Pricing Theory (APT) is FALSE? (A) The CAPM yields an equation equivalent to the one-factor APT with the factor being the stock market index. (B) The factors in the APT must be yield curve slope, level of interest rates, level of exchange rates, real GDP, and inflation. (C) A portfolio with no exposure to any APT risk factors should earn the risk-free rate on average. (D) The APT can be used to estimate the cost of equity capital for a firm. (E) All of (A), (B), (C), or (D) are true. 8.6. [2-S03:31) Which of the following are advantages of Arbitrage Pricing Theory (APT) over the Capital Asset Pricing Model? I. APT does not need a market portfolio. II. The risk factors are dictated by the design of APT. III. APT has a simpler mathematical structure. (A) I only (B) II only (C) I and II only (D) I and III only (E) II and III only 8.9. [2-F00:7] Which of the following statements about Arbitrage Pricing Theory (APT) is FALSE? (A) The CAPM yields an equation equivalent to the one-factor APT with the factor being the stock market index. (B) The factors in the APT must be yield curve slope, level of interest rates, level of exchange rates, real GDP, and inflation. (C) A portfolio with no exposure to any APT risk factors should earn the risk-free rate on average. (D) The APT can be used to estimate the cost of equity capital for a firm. (E) All of (A), (B), (C), or (D) are true