what is the main advantage of apt 
the main advantage of apt is that it allows investors to customize their research since it provides more data and it can suggest multiple sources of asset risks the bottom linearbitrage pricing theory apt is a multi factor asset pricing model based on the idea that an asset s returns can be forecasted with the linear relationship between an asset s return and a number of macroeconomic factors that affect the asset s risk arbitrage pricing theory assumes that markets sometimes misprice securities before they are corrected and move back to fair value 