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The Arbitrage Pricing Theory and subsequent models advanced thinking
from a single-factor (beta) world to a view of return and risk through
multiple factors.

Intermediate

Arbitrage Pricing Theory (APT) is a multi-factor asset pricing theory using various macroeconomic factors. The theory was first postulated by Stephen Ross in 1976 and is the basis for many third-party risk models.

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False, three independent and one dependent variable

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Will you share a non-Finance multi-factor example?*

**Doc: ***To predict final grades, based on test
scores, and worthwhile class participation.*

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Keywords:

Arbitrage Pricing Theory

APT

Stephen Ross

multi-factor

asset pricing model

macroeconomic factors

fundamental factors

statistical factors

stock pricing

risk models

regression