What does the arbitrage pricing theory

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Reference no: EM131279700

1. a. What does the arbitrage pricing theory as formulated by Stephen Ross say about factors and the number of factors?

b. What is meant by a factor beta?

2. a. In the estimation of a multifactor model, what is the implicit assumption about the number of observations in a time series used to estimate the model and the number of factors?

b. Why is this assumption important?

Reference no: EM131279700

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