What does the arbitrage pricing theory as formulated by


1. a. What does the arbitrage pricing theory as formulated by Stephen Ross say about factors and the number of factors?

b. What is meant by a factor beta?

2. a. In the estimation of a multifactor model, what is the implicit assumption about the number of observations in a time series used to estimate the model and the number of factors?

b. Why is this assumption important?

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Business Management: What does the arbitrage pricing theory as formulated by
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