Question 3 2.5 pts Arbitrage pricing theory is based on the idea that arbitrage opportunities should exist in market equilibrium. True False Question 4 2.5 pts Investors should actively look for mispriced securities in a market where stock prices are stable over time. True False Question 5 5 pts Which of the following are assumptions of the simple CAPM model? 1. Individual investors may have different levels of risk aversion. II. Investors plan for different holding periods. III. All investors analyze securities in the same way and share the same economic view of the world. IV. Investors are rational. O I, II, III, and IV I, III, and IV only I, and III only 1, and Il only II, III, and IV only