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.
E) This cannot be determined or even estimated.

Question

Quizplus · Accepted Answer

The APT model (Arbitrage Pricing Theory) suggests that asset pricing is influenced by multiple macroeconomic factors, such as inflation, GNP, and interest rates. Unemployment, college tuition, and change in housing prices are not typically considered as significant factors in the APT model.

Three Factors Likely to Occur in the APT Model Are