Among the three APT models presented, the only common factor is
A) inflation rate.
B) GDP.
C) return on Standard and Poor's 500.
D) defense spending.

Name: Among the three APT models presented, the only common factor is A) inflation rate. B) GDP. C) return on Standard and Poor's 500. D) defense spending.
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Question

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The inflation rate is a common factor in various Arbitrage Pricing Theory (APT) models because it affects the economy broadly, influencing the rates of return on investments.

Among the Three APT Models Presented, the Only Common Factor