The most realistic APT model would likely include:
A)multiple factors.
B)only one factor.
C)a factor to measure inﬂation.
D)Both A and C.
E)Both B and C.

Question

Quizplus · Accepted Answer

The most realistic APT model would likely include multiple factors as well as a factor to measure inflation, as these are important variables that can impact asset prices. Therefore, choices A and C are both necessary to create a comprehensive and realistic APT model. Choice B, which suggests that only one factor is needed, is not adequate given the complexity of the financial markets and the various factors that can influence asset prices.

The Most Realistic APT Model Would Likely Include