Which of the following statements about the Arbitrage Pricing Theory (APT) are correct? Check all that apply.

The APT allows the required return be a function of two, three, four, or more factors.

The APT assumes that all investors hold the market portfolio.

The APT is a single-factor model.

The APT requires fewer assumptions than the Capital Asset Pricing Model (CAPM).

Lisa, an analyst at Graffiti Corporation (GC), models the companys stock assuming that all stocks returns depend on only three risk factors: inflation, industrial production, and the aggregate degree of risk aversion. The risk-free rate is rRFrRF = 8%, the return on the market is rMrM = 10%, and the rest of the available data is given in the following table:

Variable	Value
The required rate of return on an inflation portfolio, r1r1	8%
The required return on an industrial production portfolio, r2r2	12%
The required return on a risk-bearing portfolio, r3r3	5%
Factor sensitivity to the inflation portfolio, b1b1	0.5
Factor sensitivity to the industrial production portfolio, b2b2	0.4
Factor sensitivity to the risk-bearing portfolio, b3b3	1.1
Graffiti Corporations beta, bGbGCC	2.0

Using the APT model, Lisa calculates that GCs required rate of return is .

If Lisa used the Capital Asset Pricing Model, she would have calculated that GCs required rate of return is .