TY - JOUR T1 - The Impact of Ross’s Exploration of APT on Our Research JF - The Journal of Portfolio Management SP - 98 LP - 107 DO - 10.3905/jpm.2018.44.6.098 VL - 44 IS - 6 AU - Edwin J. Elton AU - Martin J. Gruber Y1 - 2018/06/30 UR - https://pm-research.com/content/44/6/98.abstract N2 - Stephen A. Ross’s research has had a major impact on the theory and practice of financial economics. In this article, the authors concentrate on one of his contributions: arbitrage pricing theory (APT). After reviewing the theory, they discuss Ross’s contribution to their research. In particular, they review research on the number of factors present in the return-generating process and in expected returns, the use of macroeconomic variables in the APT setting, and implications of APT for the performance and performance predictability of mutual funds.TOPICS: Portfolio theory, quantitative methods, mutual fund performance ER -