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 […]