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
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

The Industry's Long-Run Supply Curve * Long-Run Elasticity of Supply   1) Constant-cost industry Long run supply is horizontal Small increase in price will induc

The sole producer of the anti-diarrhea drug STOP supplies two retail pharmacies in an isolated village. The two pharmacies compete à la Cournot in a market characterized by an inve


I am having a hard time figuring out how to find marginal product.


what are criteria and conditions for pareto optimacy

I don''t really understand how scitovsky contour is formed.

ADMINISTRATIVE REFORMS - ECONOMIC POLICY: During the last few decades, phenomenal changes are taking place at a fast rate in the field of science and technology as well as in

What simplifying assumptions does the traditional macroeconomic model make (in addition to those made in the NIPA)?  The simplifying assumptions are:  1) The household and i