@article {Elton98, author = {Edwin J. Elton and Martin J. Gruber}, title = {The Impact of Ross{\textquoteright}s Exploration of APT on Our Research}, volume = {44}, number = {6}, pages = {98--107}, year = {2018}, doi = {10.3905/jpm.2018.44.6.098}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Stephen A. Ross{\textquoteright}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{\textquoteright}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}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/44/6/98}, eprint = {https://jpm.pm-research.com/content/44/6/98.full.pdf}, journal = {The Journal of Portfolio Management} }