Arbitrage pricing theory, economics, Microeconomics

Assignment Help:
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.

Related Discussions:- Arbitrage pricing theory, economics

Supply of labour, use a graphical illustration to briefly describe what the...

use a graphical illustration to briefly describe what the influence of an increase in immigrants would be on the market supply of labour

Find the marginal utilities, An individual derives utility from consuming g...

An individual derives utility from consuming goods X and Y according to the following estimated utility function U = 12X 2/3 Y ¼       X and Y are quantities (units) of

Marginal Cost, why raise MC cost after minimum level ?

why raise MC cost after minimum level ?

Arc elasticity, Arc Elasticity is defined below: Arc elasticity measure...

Arc Elasticity is defined below: Arc elasticity measures/calculates the "average" elasticity between two points on the demand curve. The formula is simply given as (change in q

Pooling, pooling in insurance

pooling in insurance

Pension benefits, Pensions: Pension benefits are paid to individuals who ha...

Pensions: Pension benefits are paid to individuals who have retired from active employment, in order to support themselves in last years of their lives. Pension programs can be spo

Cost theory, What are the economies and diseconomics of scale?

What are the economies and diseconomics of scale?

Outline the main components of trade liberalization, Problem: "Mauritiu...

Problem: "Mauritius offers an interesting case study of successful trade liberalization and export-led development in Sub-Saharan Africa. This is a notable achievement given t

Determine the equilibrium price and quantity , The Market for Pool Rafts ...

The Market for Pool Rafts The market for pool rafts in Playa del Largarto is competitive and includes no transaction costs.  Five suppliers are willing to sell pool rafts in P

Determination of exchange rates, DETERMINATION OF EXCHANGE RATES: When...

DETERMINATION OF EXCHANGE RATES: When we study the determinants of exchange rates, we must distinguish between long run determinants and short run because the determinants in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd