A Factor,as Used in APT,is a Variable That

Multiple Choice

A factor,as used in APT,is a variable that:

A) represents a nondiversifiable risk.
B) affects the returns of risky assets in an unsystematic fashion.
C) correlates the returns of a risky asset with those of a risk-free asset.
D) measures the response of a specific asset to a systematic risk.
E) represents a firm-specific risk.