Factors derived through factor analysis cannot always be interpreted, for example some factors cannot be assigned a measurable proxy or a factor may reflect a combination of several (perhaps offsetting) influences. So even if nearly all of a sample’s variation in returns can be accounted for with independent factors, it can be difficult to assign meaning to these factors (Kritzman, 1993). Two tests for sample adequacy like Kaiser-Meyer-Olkin measure (KMO) and Bartlett’s test of sphericity is done to check the suitability of data for factor analysis.