What is the intercept term for the APT model and the Multifactor Models? One of the exams in schweser, it says that the intercept for an APT model is the E® but in the schweser notes, it says it’s the RFR and the intercept for the Multifactor model is the E®. Can someone explain this to me please? Thanks

it is the RFR… however, in the macroeconomic models it is the E® derived from the APT model…

Thanks Chadtap, that’s exactly what it says in the book. A bit confusing, not sure why they had a different explanation in the exams.