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Explain the APT, outlining the mathematical model, underpinning it, appropriately referenced.

PART 1: (25 marks) 1. Carefully explain the APT, outlining the mathematical model, underpinning it, appropriately referenced. [8 marks] 2. Discuss, with reference to an empirical study, the applicability of APT for estimating excess stock returns. 2 publication. It can be a more recent study or a seminal work, but not the example discussed in […]

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