What does arbitrage pricing theory mean?

Definitions for arbitrage pricing theory
ar·bi·trage pric·ing the·o·ry

Here are all the possible meanings and translations of the word arbitrage pricing theory.

Wiktionary

  1. arbitrage pricing theorynoun

    A theory of asset pricing serving as a framework for the arbitrage pricing model.

Freebase

  1. Arbitrage pricing theory

    In finance, arbitrage pricing theory is a general theory of asset pricing that holds that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indices, where sensitivity to changes in each factor is represented by a factor-specific beta coefficient. 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 discounted at the rate implied by the model. If the price diverges, arbitrage should bring it back into line. The theory was proposed by the economist Stephen Ross in 1976.

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Numerology

  1. Chaldean Numerology

    The numerical value of arbitrage pricing theory in Chaldean Numerology is: 5

  2. Pythagorean Numerology

    The numerical value of arbitrage pricing theory in Pythagorean Numerology is: 5

Images & Illustrations of arbitrage pricing theory

  1. arbitrage pricing theoryarbitrage pricing theoryarbitrage pricing theoryarbitrage pricing theoryarbitrage pricing theory

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