To see the desired glossary, please select the language and then the field of expertise.

    Home
    • English
      • Search
        • Term
          • arbitrage pricing theory
        • Additional fields of expertise
        • Definition(s)
          • The arbitrage pricing theory says that the price of a financial asset reflects a few key risk factors, such as the expected rate of interest, and how the price of the asset changes relative to the price of a portfolio of assets. If the price of an asset happens to diverge from what the theory says it should be, arbitrage by investors should bring it back into line. The Economist
        • Example sentence(s)
          • The Arbitrage Pricing Theory provides more flexibility than the CAPM; however, the former is more complex. The inputs that make the arbitrage pricing model complicated are the asset’s price sensitivity to factor n (βn) and the risk premium to factor n (RPn). - Corporate Finance Institute by
          • Over the years, arbitrage pricing theory has grown in popularity for its relatively simpler assumptions. However, arbitrage pricing theory is a lot more difficult to apply in practice because it requires a lot of data and complex statistical analysis. - Investopedia by
          • The test's results show that, within the scope of the methodology and data employed, the Arbitrage Pricing Theory (APT) does hold in the very emerging stock market of Thailand, while the CAPM (Capital Asset Pricing Model) fails to do so. - IDEAS by
    Compare [close]
    • Korean
      • Search
        • Term
          • 차익거래가격결정이론, 재정가격결정이론
        • Additional fields of expertise
        • Definition(s)
          • 평균-분산 자본자산가격결정모형에 대한 대안으로 로스（Ross）에 의해 개발된 자산가격결정이론이다. APT 에 의하면 자산의 수익률은 다수의 공통요인들（common factors）의 선형관계에 의해 결정된다. e-Daily economics dictionary - by Jeewon Bae
        • Example sentence(s)
          • 은행측은 로스 교수가 `재정가격 결정이론(arbitrage pricing theory)' 등 파생상품에 관한 세계적 권위자로 키코 사건을 설명하는 데 적임자여서 증인으로 신청했다고 밝혔다. - Yonhap News by Jeewon Bae
          • 본 연구의 목적은 한국 증권시장을 대상으로 거시경제변수를 요인으로 한 차익거래결정이론(Arbitrage Pricing Theory: APT)의 타당성을 실증 분석하는 것이다. - A research article by Jeewon Bae
        • Related KudoZ question
  • Compare this term in: Albanian, Arabic, Armenian, Bulgarian, German, Spanish, Persian (Farsi), French, Polish, Portuguese, Romanian, Russian, Ukrainian

The glossary compiled from Glossary-building KudoZ is made available openly under the Creative Commons "By" license (v3.0). By submitting this form, you agree to make your contribution available to others under the terms of that license.

Creative Commons License