Arbitrage Pricing Theory. These derived macroeconomic factors (exogenous variables) were estimated by applying Principal …The Arbitrage Pricing Theory was tested over the three periods 1972-1987, 1972-1979, and 1980-1987. The results of … these tests were consistent with the Arbitrage Pricing Theory over the subperiods 1972-1979 and 1980-1987, and less …