Arbitrage pricing theory, Microeconomics

Arbitrage Pricing Theory

Arbitrage defines the procedure of continuously buying a security for privacy, currency, or commodity on one market and selling it in another.  Price variations between the two markets give the arbitrageur his or her profit. The arbitrage pricing theory is based upon the concept of arbitrage, and define how assets should be valued if there were no riskless arbitrage opportunities.  When security markets are competitive and effective, then chances to profit from arbitrage should be nonexistent.

Posted Date: 10/15/2012 2:22:25 AM | Location : United States







Related Discussions:- Arbitrage pricing theory, Assignment Help, Ask Question on Arbitrage pricing theory, Get Answer, Expert's Help, Arbitrage pricing theory Discussions

Write discussion on Arbitrage pricing theory
Your posts are moderated
Related Questions
schedules for cost

Difficulties in Measuring Cost  1) Output data may represent an aggregate of different type of products.  2) Cost data may not include opportunity cost.   3) Allocating c


Problem 1: Write short notes on all of the following: (a) Log Linear regression model (b) Lin-Log regression model (c) Individual versus Overall Significance Probl

Exchange Rate Policy: After the second amendment to the Articles of Agreement of IMF which came into effect on April 1, 1978, every member is free to choose its own exchange r

waht are the characteristics of perfect competetion market

Seaports and Airports: Seaports India has 12 major ports and about 185 minor ports over its coastline spread over 7,000 kms. Major ports are managed by the Central Government

Suppose you own a home remodeling company. You are currently earning short-run profits. The home remodeling industry is an increasing-cost industry. In the long run, what do you ex

Why and how are economists attempting to create more accurate measurements of development? The why part is simply because of the complexities built-in to the concept of develop

Economists view depreciation as capital consumption for them, there are two distinct ways of charging for depreciation (1) the depreciation of equipment must equal its opportunity