Arbitrage Pricing Theory

In this report, we discover APT as a model used to provide pricing strategy for stocks in the best possible way by taking into consideration multiple risks that are associated along with the stocks. From the research carried out, it has been found out that there are several macroeconomic and financial factors that influence stock returns. They are: global, political, cyclical, systemic, synergistic and industry factors, and also the investment characteristics of the issuer's position in the region. However, some of these variables can affect the stock return more than others.

Executive Summary…………………………………………………………………………….…..………p3
Arbitrage Pricing Theory/Introduction…………………………………………………………….p4
Macroeconomic and Financial Factors affecting the stock price……………………………………………………………………………………………………………….p5-6
Constructing the basic regression model and the assessment of its quality……..…………………………………………………………………………………………………..p7-14
Appendix………………………………………………………………………………………………………p15-21
Group Meeting Minutes………………………………………………………………….……………p22-24
References……………………………………………………………………………………………………p25-26