They found that the APT was not sensitive to the number of risk factors greater than five and that the CAPM approach to measuring portfolio investments was more correlated to average returns without any risk adjustment like APT. We cannot deny that APT is indeed applicable when explaining the performance of investment portfolios, this has been studied and tested by numerous scholars. More recently Ramadan (2012) carried out a validity test of the APT in the Jordanian stock market, his results were that macroeconomic variables and market indicators explained 84% of the variation in returns on the chosen market portfolio. Another finding was that the effect of some variables coincides when comparing sectors within the market. (Ramadan,