Journal article

Yes, The APT Is Testable

DYBVIG P, ROSS S ...see all

The Journal of Finance, vol. 40, issue 4 (1985) pp. 1173-1188

  • 51


    Mendeley users who have this article in their library.
  • 59


    Citations of this article.
Sign in to save reference


The Arbitrage Pricing Theory (APT) has been proposed as an alternative to the mean-variance Capital Asset Pricing Model (CAPM). This paper considers the testability of the APT and points out the irrelevance for testing of the approximation error. We refute Shanken's objections, including his assertion that Roll's critique of the CAPM is applicable to the APT. We also explain the testability of the APT on subsets, and we explore the relationship between the APT and the CAPM. [ABSTRACT FROM AUTHOR]

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Get full text


Error loading document authors.

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free