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

Private benefit and social benefit, Private benefit and social benefit: ...

Private benefit and social benefit: Bridge the gab between private cost and social cost, and private benefit and social benefit.Under perfect market, there may be a divergence

Potential Pareto Improvement, I need some help to answer a discussion topic...

I need some help to answer a discussion topic question about Potential Pareto Improvement, based on an article

Applications, hey, I just have a question on how to apply things like ATC a...

hey, I just have a question on how to apply things like ATC and AVC in a problem. im just not too sure about what happens to the quantity of a particular good when asked. this is p

Explain about neoliberalism, Q. Explain about Neoliberalism? Neoliberal...

Q. Explain about Neoliberalism? Neoliberalism: A modern, harsher incarnation of capitalism that became dominant globally beginning in early 1980s, largely as a reaction to inte

Long - term periods of stagnation, Long Waves: Longer-term periods of stagn...

Long Waves: Longer-term periods of stagnation or growth in the economy, that can last for a decade or more and reflect broader changes in technology, politics, and international re

Population census, Population census: A population census is the head ...

Population census: A population census is the head count of people living in a geographical area or in a country. A population census collects comprehensive data on people to

Entrepreneur, Entrepreneur: The entrepreneur or enterprise is a specia...

Entrepreneur: The entrepreneur or enterprise is a special factor of production that is in charge of the organization of the other three factors of production (land, labour and

Supply of labour, what is the influence of an increase of migrants on the m...

what is the influence of an increase of migrants on the market supply labour

Graph & calulations, Not sure how to graph & calculate a retail price of $3...

Not sure how to graph & calculate a retail price of $30 & avg cost $20 assuming that the equation for demand is Q=10,000-9,000P, where P=retail price & Q=# sold per month.Then to s

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