Question

Principles of arbitrage pricing theory

Answer 1

the sensitivity of assets returns to the risk factors. Asset pricing models, such as the APT, are alternatives to the CAPM. They allow for multiple risk factors as opposed to the single one in the CAPM. ... In APT, asset values are determine by the principle of the law of one price


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Answer 2

the sensitivity of assets returns to the risk factors. Asset pricing models, such as the APT, are alternatives to the CAPM. They allow for multiple risk factors as opposed to the single one in the CAPM. ... In APT, asset values are determine by the principle of the law of one price