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Arbitrage Pricing Theory

APT. An alternative Asset pricing model to the Capital Asset Pricing Model. Unlike the Capital Asset Pricing Model, which specifies returns as a linear function of only systematic Risk, Arbitrage Pricing Theory may specify returns as a linear function of more than a single Factor.

Related Terms: 13 Asset, Arbitrage, Arbitrage Pricing Theory, Capital, Capital asset, Cap, Capital Asset Pricing Model, ECI, Factor, Mode, Return, Risk, Single
Other Related Pages: Category: Strategies Starting With: A
Semi Related Terms: 514 CLICK HERE TO VIEW
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