Suppose you could forecast the behavior of APT factors, such as industrial production, interest rates, etc. You

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“Suppose you could forecast the behavior of APT factors, such as industrial production, interest rates, etc. You could then identify stocks’ sensitivities to these factors, pick the right stocks, and make lots of money.” Is this a good argument favoring the APT? Explain why or why not.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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