For a company like the aluminum manufacturer Alcoa,what is the most likely factor when developing an arbitrage pricing model?

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Quizplus · Accepted Answer

Since Alcoa is an aluminum manufacturer, the commodity price of aluminum is likely to be the most relevant factor when developing an arbitrage pricing model. Returns on the S&P 500 index, GDP, and inflation may have some impact on the model, but the price of aluminum is the most directly relevant to Alcoa's business operations.

For a Company Like the Aluminum Manufacturer Alcoa,what Is the Most