Arbitrage pricing theory (APT) suggests that a stock's price is influenced only by a stock's beta.

Name: Arbitrage pricing theory (APT) suggests that a stock's price is influenced only by a stock's beta.
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APT suggests that a stock's price is influenced by multiple factors, not just its beta. It takes into account various macroeconomic and market-specific factors that may affect the stock's price, leading to the identification of multiple factors that influence the stock's return.

Arbitrage Pricing Theory (APT) Suggests That a Stock's Price Is