The arbitrage pricing theory recognizes that the return on the market portfolio may not be the only potential source of ________ that affect the returns on equities.

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The arbitrage pricing theory recognizes that there may be other factors, in addition to the return on the market portfolio, that can affect the returns on equities. These factors are often referred to as "systematic risks," and include things like changes in interest rates, inflation, and other macroeconomic factors. The theory suggests that these factors can be quantified and used to explain the expected returns on equities, creating a more complete picture of the risks and rewards associated with different investments.

The Arbitrage Pricing Theory Recognizes That the Return on the Market