THE APT MODEL GIVES US THE INTERCEPT TERM WHICH IS THE EXPECTED RETURN OF THE ASSET

15. - CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R48 INTRODUCTION TO MULTIFACTOR MODELS Q BANK
CFA 2018 LEVEL 2 PORTFORLIO QUESTION BANK R48 INTRODUCTION TO MULTIFACTOR MODELS Q BANK

15. C is correct. The APT model gives us the intercept term which is the expected return of the

asset. The number and identity of factors are not specified by the APT model. Section 3.

LO.a.