APT

  • 2 Posts
  • 1 Sections
  • 1 Types
Definitions
APT (Arbitrage Pricing Theory)
Arbitrage Pricing Theory APT Asset Pricing Model Macroeconomic Factors Multifactor Model CAPM Alternative
Arbitrage Pricing Theory (APT) is a multifactor model used to determine the fair price of an asset considering multiple macroeconomic factors without the need for a market portfolio. It is an alternative to the Capital Asset Pricing Model (CAPM) and is known for its flexibility and foundation in arbitrage conditions.
Read more about APT (Arbitrage Pricing Theory).
Definitions
Arbitrage Pricing Theory (APT)
Arbitrage Pricing Theory APT Stephen Ross Systematic Risk Security Returns CAPM Discount Rates Financial Models
Arbitrage Pricing Theory (APT) is a model proposed by Stephen Ross in 1976 for calculating returns on securities. It assumes multiple factors affecting security returns, differing from the Capital Asset Pricing Model (CAPM), which relies on a single systematic risk factor.
Read more about Arbitrage Pricing Theory (APT).

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.