Capital Asset Pricing Model (Capm)Vs.Arbitrage Pricing Theory (Apt)

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Issue:

Miscellaneous

 

Written by:

Michael J

 

Date added:

February 4, 2016

 

Level:

College

 

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No of pages / words:

1 / 211

 

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1619 times

 

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Essay content:

The Arbitrage Pricing Theory (APT) is a very detailed pricing method. The APT is based on five different economical factors. The factors are: business cycle, time horizon, confidence, inflation and market timing risk. “The primary advantage of using the APT in portfolio selection and portfolio risk management is that the model makes the fundamental sources of risk explicit...
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The APT is based on five different economical factors. The factors are: business cycle, time horizon, confidence, inflation and market timing risk. “The primary advantage of using the APT in portfolio selection and portfolio risk management is that the model makes the fundamental sources of risk explicit...
displayed 300 characters

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