Three Factors Likely to Occur in the APT Model Are

question 8

Multiple Choice

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.

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Definitions:

Assumption's Probability Distribution

The theoretical distribution of probabilities assigned to all possible values of a variable based on certain assumptions.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Percentage Of Risk

The proportion of risk involved in a particular investment or business decision, often expressed as a percentage.

Market Size

An estimate of the demand for a product or service within a particular market.