Question: In a factor model, the return on a stock in a particular period will be related to a. both firm-specific events and macroeconomic events. b.

In a factor model, the return on a stock in a particular period will be related to

a. both firm-specific events and macroeconomic events.

b. the error term.

c. firm-specific events.

d. neither firm-specific events nor macroeconomic events.

e. macroeconomic events.

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