The arbitrage pricing theory basically states that the market return is determined by a number of distinct, unidentifiable _____ factors.
A) macroeconomic
B) microeconomic
C) political
D) well-known

Question

Quizplus · Accepted Answer

The arbitrage pricing theory (APT) posits that the returns on assets are influenced by various macroeconomic factors, which can include inflation rates, interest rates, and the overall economic growth rate, among others. These factors are considered distinct and can impact the performance of investments in the market.

The Arbitrage Pricing Theory Basically States That the Market Return