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David MeLemore, the CFO of Ultra Bread, has used the APT model to cstimate the required return on the company's stock. The risk factors he
David MeLemore, the CFO of Ultra Bread, has used the APT model to cstimate the required return on the company's stock. The risk factors he plans to use are the risk premiurn on the stock market, the inflation rate, and the price of wheat. Because wheat is one of the biggest costs Ultri Bread faces. be foels this is a significant risk factor for Ultra Bread. How would you evaluate his choice of risk factors? Are there other risk factors you might suggest
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