arbitrage pricing theory การใช้

• The arbitrage pricing theory ( APT ) similarly differs as regards its assumptions.
• These statistical models have become essential tools of modern arbitrage pricing theory and practice.
• These models include the arbitrage pricing theory and the modern portfolio theory families of models.
• These constraints may be relaxed to allow for shorting, or if factors rather than indices are used; this modification brings the model closer to arbitrage pricing theory than to the Capital Asset Pricing Model.
• Therefore, under the arbitrage pricing theory, investors who are willing to lock their money in now need to be compensated for the anticipated rise in rates thus the higher interest rate on long-term investments.
• The model derived rate of return will then be used to price the asset correctly  the asset price should equal the expected end of period price arbitrage pricing theory article for detail on the construction of the portfolio.
• Arbitrage pricing theory describes the theoretical relationship between information that is known to market participants about a particular equity ( e . g ., a common stock share of a particular company ) and the price of that equity.
• Ross is best known for the development of the arbitrage pricing theory ( mid-1970s ) as well as for his role in developing the binomial options pricing model ( 1979; also known as the Cox Ross Rubinstein model ).