Comparision of CAPM and APT

Essay specific features

 

Issue:

Business

 

Written by:

John W

 

Date added:

September 16, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

32 / 8849

 

Was viewed:

3276 times

 

Rating of current essay:

 
Essay content:

Empirical tests in this study suggest that the relationships between ? and return in the ISM over the period January 1990 – June 2001 is weak, and the Capital Asset Pricing Model (CAPM) has poor overall explanatory power. The Arbitrage Pricing Theory (APT), which allows multiple sources of systematic risks to be taken into account, performs better than the CAPM, in all the tests considered...
displayed 300 characters

Custom written essay

All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page

Order custom paper

Full essays database

You get access to all the essays and can view as many of them as you like for as little as $28.95/month

Buy database access

Order custom writing paper now!

  • Your research paper is written
    by certified writers
  • Your requirements and targets are
    always met
  • You are able to control the progress
    of your writing assignment
  • You get a chance to become an
    excellent student!

Get a price guote

 
 

The Arbitrage Pricing Theory (APT), which allows multiple sources of systematic risks to be taken into account, performs better than the CAPM, in all the tests considered. Shares and portfolios in the ISM seem to be significantly influenced by a number of systematic forces and their behaviour can be explained only through the combined explanatory power of several factors or macroeconomic variables...
displayed 300 characters

General issues of this essay:

Related essays:

x
Services