Arbitrage pricing theory, economics, Microeconomics

Arbitrage pricing theory is between one of two influential economic theories of how assets are formed or priced in the financial markets and the other model is the capital asset pricing model. Arbitrage pricing theory states that the price of a financial asset reflects a few key risk factors, like as the expected rate of interest & how the asset price changes relative to the price of a portfolio of assets. If price of asset happens to diverge by what the theory states it must be arbitrage by investors should bring it back into line.
Posted Date: 2/4/2012 11:42:40 PM | Location : United States







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

Write discussion on Arbitrage pricing theory, economics
Your posts are moderated
Related Questions
what is bains theory ? describe with the diagram

Within analysis of perfect competition, we distinguish between the short run and the long run on the basis that use of some input factors is fixed in the short run, but variable in

Write Equations Of Average Total Cost Variable Cost Marginal Cost, Economics Write equations for total cost, average total cost, variable cost, and marginal cost. The Central Pub

Factors that calculate price elasticity of demand: The proportion of Income spent on the Commodity If the price of a good is relatively low such the expenditure on it is a

what is microeconomics

Question 1: ? deduce the causal factors behind technological developments in different cultures and during different periods of human history ? assess the basis of common cr

Purpose: this case is intended to model supply chain, especially the reverse logistic behaviour. Description: In Cal Poly Pomona, TOM301 (Operations Management) is a core cou

Economics and Ethics : Morality and ethics are powerful motivations to behavior.  Thouh, economists suppose that rationality is a function of demonstrable self-interest.  That mean

According to the Linder theory ,trade will occur in goods that have overlapping demand. With aid of a graph ,illustrate this theory and its implications

is it just assumed that a monopoly graph is showing economic profit instead of accounting profit