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In what respect are APT models better than the CAPM? A. APT models have a more sound theoretical foundation B. APT models have less model

In what respect are APT models better than the CAPM?

A. APT models have a more sound theoretical foundation

B. APT models have less model risk because they are simpler

C. APT models are simpler to implement

D. APT models are forward-looking, while the CAPM is backward-looking

E. APT models are better at empirical prediction

(I think it's either D. or E., but I am unsure)

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