Arrange the following steps in logical sequence of operation of the Arbitrage Pricing Theory (APT).
(A) Estimate the Factor Sensitivities
(B) Estimate the Risk Premium for Factor(s)
(C) Identify the Macroeconomic Factors
Choose the correct answer from the options given below:
1
(A), (B), (C)
2
(B), (A), (C)
3
(C), (B), (A)
4
(C), (A), (B)