Three factors likely to occur in the APT model are:
A) unemployment, inflation, and current rates.
B) inflation, GNP, and interest rates.
C) current rates, inflation and change in housing prices.
D) unemployment, college tuition, and GNP.

Question

Quizplus · Accepted Answer

The Arbitrage Pricing Theory (APT) model is a multifactor financial model that describes the relationship between the return of a portfolio and the returns of multiple macroeconomic factors. Inflation, Gross National Product (GNP), and interest rates are common examples of such factors because they have a significant impact on the returns of most assets.

Three Factors Likely to Occur in the APT Model Are