What is Arbitrage Pricing Theory

What is Arbitrage Pricing Theory?

E

Expert

Verified

In 1976, the Arbitrage Pricing Theory (APT) of Stephen Ross represents the returns on individual assets like a linear combination of many random factors. These random factors can be statistical factors or fundamental. When to be no arbitrage opportunities there should be restrictions on the investment processes.

   Related Questions in Financial Management

  • Q : Ratios which bankers consider to grant

    Which ratios the bankers are most interested in while considering whether to grant a short-term business loan?

  • Q : What is marking to market What is

    What is marking to market?

  • Q : Why is the money given time value Why

    Why is the money given time value?

  • Q : 10.1 Unfocused Books is a discount

    Unfocused Books is a discount retail bookshop that has three departments: fiction, non-fiction and children’s books. Sales and cost of sales for each department are shown below. In addition, each department has its own fixed costs for staffing and takes a one-third share of rental and management cos

  • Q : Why is dispersion trading become

    Why is dispersion trading become unsuccessful?

  • Q : $-£ currency swap Assume Morgan

    Assume Morgan Guaranty, Ltd. is quoting swap rates as follows: 7.75 - 8.10 percent annually against six-month dollar LIBOR for dollars and 11.25 - 11.65 percent annually against six-month dollar LIBOR for British pound sterling. At what rates will Morgan Gua

  • Q : What is the Theta in option value What

    What is the Theta in option value?

  • Q : International monetary system how does

    how does adquate liquidity ensures a good international monetary sustem

  • Q : Is there margin option on long positions

    Is there margin option on long positions? Explain.

  • Q : Suggestion to stop the recurrence of

    In integrated world financial market, a financial crisis in a country can be quickly transmitted to other countries, causing global crisis. What sort of measures would you suggest to stop the recurrence of Asia-type crisis?

    Discover Q & A

    Leading Solution Library
    Avail More Than 1427625 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1944626
    Asked

    3,689

    Active Tutors

    1427625

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.