RT Journal Article SR Electronic T1 The Impact of Ross’s Exploration of APT on Our Research JF The Journal of Portfolio Management FD Institutional Investor Journals SP 98 OP 107 DO 10.3905/jpm.2018.44.6.098 VO 44 IS 6 A1 Edwin J. Elton A1 Martin J. Gruber YR 2018 UL https://pm-research.com/content/44/6/98.abstract AB 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