An Empirical Test of the Arbitrage Pricing Theory—The Case of Indian Stock Market

@article{Basu2012AnET,
  title={An Empirical Test of the Arbitrage Pricing Theory—The Case of Indian Stock Market},
  author={Debarati Basu and Deepak Chawla},
  journal={Global Business Review},
  year={2012},
  volume={13},
  pages={421 - 432}
}
With increasing doubt about the validity of the one-factor Capital Asset Pricing Model in pricing financial assets, development of newer models or extensions has become the order of the day. This paper applies one of these developments—the multi-factor Arbitrage Pricing Theory (APT) to explore the relationship between portfolio returns and selected macroeconomic variables. While the chosen model has been extensively tested in developed markets, few such attempts have been made in emerging… 

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