If the APT is to be a useful theory, the number of systematic factors in the economy must be small. Is this statement correct or not?

Question

If the APT is to be a useful theory, the number of systematic factors in the economy must be small. Is this statement correct or not?
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Solution 1

The statement is partially correct. The Arbitrage Pricing Theory (APT) does assume that there are a few factors that affect all securities' returns. However, it doesn't necessarily mean that the number of systematic factors in the economy must be small.

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