FT MarketWatch

APT

Arbitrage Pricing Theory. 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.Thus, there is no Clear risk-return trade-off in this model.

Related Terms: 15 Asset, Arbitrage, Arbitrage Pricing Theory, Capital, Capital asset, Clear, Cap, Capital Asset Pricing Model, ECI, Factor, Mode, Return, Risk, Single, Trade
Other Related Pages: Category: Strategies Starting With: A
Additional Related Terms: 10-K, Accelerated Cost Recovery System, Active asset, Alternative assets, Asset, Asset/equity ratio, Average accounting return, Asset management account, Accrual of discount, Amortization of premium