In the Empirical Study of a Multifactor Model by Chen

question 27

Multiple Choice

In the empirical study of a multifactor model by Chen, Roll, and Ross, a factor that did not appear to have significant explanatory power in explaining security returns was

• A)the change in the expected rate of inflation.
• B)the risk premium on corporate bonds.
• C)the unexpected change in the rate of inflation.
• D)industrial production.

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