Consider the following two factor APT model
E(R)= ?? + ??b? + ??b?
A) ?1 is the expected return on the asset with zero systematic risk.
B) ?1 is the expected return on asset 1.
C) ?1 is the pricing relationship between the risk premium and the asset.
D) ?1 is the risk premium.
E) ?1 is the factor loading.

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The Answer of Consider the following two factor APT model
E(R)= ?? + ??b? + ??b?
A) ?1 is the expected return on the asset with zero systematic risk.
B) ?1 is the expected return on asset 1.
C) ?1 is the pricing relationship between the risk premium and the asset.
D) ?1 is the risk premium.
E) ?1 is the factor loading.

Consider the Following Two Factor APT Model