Question: Arbitrage Pricing Theory (APT): Consider the following statement: For the Arbitrage Pricing Theory(APT) to be useful, the number of systematic risk factors must be small.

Arbitrage Pricing Theory (APT): Consider the following statement: For the Arbitrage Pricing Theory(APT) to be useful, the number of systematic risk factors must be small. Do you agree or disagree with this statement? Why?

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