Consider Apple stock. Apple’s valuations are heavily dependent on intangible assets valuations, as the
company is a heavy user of intangible capital in its revenue generation model (think Apps platform). At the
same time, Apple is one of the five largest companies in the world. This means that Apple’s stock price
changes are systematic to the entire market: when Apple stock rises or falls, markets tend to rise or fall too.
Looking back at the assumption and definition of the APT, in your opinion, does APT apply in the case of the
market that is so heavily dominated by a handful of companies, like Apple? Explain your thinking