- Arbitrage Pricing Theory - APT
- An asset pricing model based on the idea that an asset's returns can be predicted using the relationship between that same asset and many common risk factors. Created in 1976 by Stephen Ross, this theory predicts a relationship between the returns of a portfolio and the returns of a single asset through a linear combination of many independent macro-economic variables.
The arbitrage pricing theory

*Investment dictionary.
Academic.
2012.*

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**arbitrage pricing theory**— arbitražinis įkainojimas statusas T sritis turto vertinimas apibrėžtis Nuosavo kapitalo sąnaudų keleriopas skaičiavimas, atsižvelgiant į kelis sistemos rizikos veiksnius. atitikmenys: angl. arbitrage pricing theory ryšiai: susijęs terminas –… … Lithuanian dictionary (lietuvių žodynas)**arbitrage pricing theory**— noun A theory of asset pricing serving as a framework for the arbitrage pricing model … Wiktionary**Arbitrage Pricing Theory**— An economic theory which states that if an investor earns a higher than normal return then that is because he is accepting a higher than normal risk … International financial encyclopaedia**arbitrage pricing theory**— Fin a model of financial instrument and portfolio behavior that provides a benchmark of return and risk for capital budgeting and securities analysis. It can be used to create portfolios that track a market index, estimate the risk of an asset… … The ultimate business dictionary**arbitrage pricing model**— noun An asset pricing model using one or more common factors to price returns. With only one factor, representing the market portfolio, it is called a single factor model. With two or more factors, it is called a multifactor model. See Also:… … Wiktionary**Arbitrage**— For the upcoming film, see Arbitrage (film). Not to be confused with Arbitration. In economics and finance, arbitrage (IPA: /ˈɑrbɨtrɑːʒ/) is the practice of taking advantage of a price difference between two or more markets: striking a… … Wikipedia**Fundamental theorem of arbitrage-free pricing**— In a general sense, the fundamental theorem of arbitrage/finance is a way to relate arbitrage opportunities with risk neutral measures that are equivalent to the original probability measure.The fundamental theorem in a finite state marketIn a… … Wikipedia**Investment theory**— encompasses the body of knowledge used to support the decision making process of choosing investments for various purposes. It includes portfolio theory, the Capital Asset Pricing Model, Arbitrage Pricing Theory, and the Efficient market… … Wikipedia**Dow theory**— on stock price movement is a form of technical analysis that includes some aspects of sector rotation. The theory was derived from 255 Wall Street Journal editorials written by Charles H. Dow (1851–1902), journalist, founder and first editor of… … Wikipedia**Mosaic theory**— Mosaic theory, also referred to more colloquially as the scuttlebutt method by Philip Fisher in his seminal work Common Stocks and Uncommon Profits, in finance is the method used in security analysis to gather information about a corporation.… … Wikipedia**asset pricing model**— A model for determining the required rate of return or expected rate of return on an asset. Related: capital asset pricing model and arbitrage pricing theory. Bloomberg Financial Dictionary … Financial and business terms