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Capital Asset Pricing Model (Capm)Vs.Arbitrage Pricing Theory (Apt)
Essay specific features
Written by:
Michael J
Date added:
February 4, 2016
Level:
College
Grade:
No of pages / words:
1 / 211
Was viewed:
1619 times
Rating of current essay:
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...
displayed 300 characters
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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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