ABSTRACT
As noticed in the previous chapter, the APT offers an interesting insight into risk management of financial investment in risky assets, such as listed shares in stock markets. The main objective of this chapter is to determine the observed economic and financial variables that command a risk premium in the United Kingdom, Norway, Mexico, Venezuela and Oman (which are net oil exporting countries) in the period from January 1992 to December 1999, using the arbitrage pricing theory model (see Al-Shanfari, 2001).
