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.
Suppose spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. Estimate the minimum price which a six-month American put option along with a striking price of $0.6800 must sell for in a rational market? Suppose the annualized six-month Eurodo
What is excess return?
Explain basic business goals?
Illustrates an example of traditional Value at Risk by Artzner et al?
What are the modern approaches uses for forecast volatility and model?
Provide three examples of mutually exclusive projects.
Give an example of restrictive covenants that could be given in a bond’s indenture?
Illustrates an example of Co-integration?
Illustrates an example of complete and incomplete markets?
Question1) Why is money demanded? Explain how Keynesian approach different from the classical approach in this regard?
18,76,764
1924721 Asked
3,689
Active Tutors
1450045
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!