Which of the following factors did Chen, Roll, and Ross include in their multifactor model?
A) Change in industrial waste
B) Change in expected inflation
C) Change in unanticipated inflation
D) Change in expected inflation and unanticipated inflation
E) All of the factors were included in their model.

Question

Quizplus · Accepted Answer

Chen, Roll, and Ross's multifactor model includes both changes in expected inflation and changes in unanticipated inflation among its factors, reflecting how different types of inflation expectations can impact asset prices.

Which of the Following Factors Did Chen, Roll, and Ross