You have a 3 factor model to explain returns. Explain what a factor represents in the context of the APT?
Each factor is multiplied by a beta. What do these represent and how do they relate to the actual return?

Question

You have a 3 factor model to explain returns. Explain what a factor represents in the context of the APT?
 Each factor is multiplied by a beta. What do these represent and how do they relate to the actual return?

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The Answer of You have a 3 factor model to explain returns. Explain what a factor represents in the context of the APT?
 Each factor is multiplied by a beta. What do these represent and how do they relate to the actual return?

You Have a 3 Factor Model to Explain Returns