As a manager of a large, broadly diversified portfolio of stocks and bonds you realized that changes in certain microeconomic variables may directly affect the performance of your portfolio. you are considering unsing and Arbitrage pricing theory (APT) approach to strategic portfolio planning and want to analyze the possible impact of the following four factors: industrial production, inflation, risk premia or quality spreads, and yield curve shifts. Indicate how each of these four factors influence s the cash flows and/or the discount rates in the traditional discounted cash flow model. Explain how unanticipated changes in aech of these four factors could affect portfolio returns.