Instruction
Are the following statements true or false? Explain why. Each question requires a reference. These answers do not need to be very long, just answered:
a. The APT factors cannot reflect diversifiable risks.
b. The market rate of return cannot be an APT factor.
c. There is no theory that specifically identifies the APT factors.
d. The APT model could be true but not very useful, for example, if the relevant factors change unpredictably.