考点

问题如下：

Question A return-generating model that provides an estimate of the expected return of a security based on such factors as earnings growth and cash flow generation is best described as a:

选项：

A.market factor model. B.fundamental factor model. C.macroeconomic factor model.

解释：

Solution

B is correct. A return-generating model based on such factors as earnings growth and cash flow generation is a fundamental factor model.

A is incorrect. In a market model, the factor is the market return.

C is incorrect. In a macroeconomic factor model, appropriate factors would be economic factors such as the interest rate and the inflation rate.