estimate the excess returns on a stock of your choice applying the Arbitrage Pricing

to estimate the excess returns on a stock of your choice applying the Arbitrage Pricing Theory (APT).Aim: to evaluate your understanding of financial theory to transform data into correct form, to model financial relationships and correctly interpret the findings. The analysis of the results is the most important stage of the assignment. It involves estimating an initial model or models, performing appropriate diagnostic tests, re-forming and re-estimating, and conducting tests of hypothesis.