What are the difference between CAPM and APT
What are the difference between CAPM and APT?
Expert
The main differences among CAPM and APT are that CAPM is based upon equilibrium arguments to find to the concept of the Market Portfolio, while APT is based upon a simple estimated arbitrage argument. Though, APT talks about arbitrage, this should be contrasted with the arbitrage arguments we notice in spot versus forward and into option pricing. These are genuine specific arbitrages (albeit the latter being modelled dependent). While, APT the arbitrage is only estimated.
How does marking to market affect risk management in derivatives trading?
Explain the term PGARCH as of the GARCH’s family.
How are financial or economic variable represented by index?
Why a different type of mathematics in Quantitative Finance is important?
Who proposed the probabilistic approach based on copulas?
Explain how a country can run net balance of payments deficit or surplus.A country can run net BOP deficit or surplus by engaging in the official reserve transactions. For instance, an overall BOP deficit can be supported through drawing down th
Illustrates the family members of the GARCH?
The March 2000 Mexican peso futures contract contains a price of $0.11695. You believe the spot price will be $0.09550 in March. What speculative location would you enter into to try to profit from your beliefs? Compute your anticipated profits supposing yo
What is Generalized Auto Regressive Conditional Heteroscedasticity?
Explain Poisson process in Brownian motion.
18,76,764
1926629 Asked
3,689
Active Tutors
1448653
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!