Consider the Following List of Risk Factors: 1

Consider the following list of risk factors: 1. monthly growth in industrial production
2. return on high book to market value portfolio minus return on low book to market value portfolio
3. change in inflation
4. excess return on stock market portfolio
5. return on small cap portfolio minus return on big cap portfolio
6. unanticipated change in bond credit spread
Which of the following factors would you use to develop a microeconomic-based risk factor model?

A) 1, 2, and 3
B) 1, 3, and 5
C) 2, 4, and 5
D) 1, 3, and 6
E) 4, 5, and 6