Risk factors in the APT must possess all of the following the characteristics except:
A)Factors must be readily observable in risk/return space.
B)Each factor must have a pervasive influence on stock returns
C)The factors must influence expected return.
D)Factors must be unpredictable.

Question

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The Answer of Risk factors in the APT must possess all of the following the characteristics except:
A)Factors must be readily observable in risk/return space.
B)Each factor must have a pervasive influence on stock returns
C)The factors must influence expected return.
D)Factors must be unpredictable.

Risk Factors in the APT Must Possess All of the Following