Meaning ARBITRAGE PRICING THEORY (APT): An alternative model to the capital asset pricing model developed by Stephen Ross and based purely on arbitrage arguments. The APT implies that there are multiple risk factors that need to be taken into account when calculating risk-adjusted performance or alpha
More terms such as Arbitrage Pricing Theory (APT) in Dictionary A.
- Definition Alien Corporation:
- Examples A company incorporated under the laws of a foreign country regardless of where the company conducts its operations arbitrage pricing theory (apt) definition.
- Definition Additional Hedge:
- Examples A protection against borrower fallout risk in the mortgage pipeline arbitrage pricing theory (apt) explain.
- Definition Annual Basis:
- Examples The technique in statistics of taking a figure covering a period of less than one year and extrapolating it to cover a full one year period. The process is known as annualizing arbitrage pricing theory (apt) what is.
- Definition Automatic Stay:
- Examples The restricting of liabilityholders from collection efforts related to collateral seizure. Automatically imposed when a firm files for bankruptcy under Chapter 11 arbitrage pricing theory (apt) meaning.
- Definition Adjusted Balance Method:
- Examples calculating finance charges that uses the account balance remaining after adjusting for all transactions posted during the given billing period as its basis. Related: Average daily balance method arbitrage pricing theory (apt) abbreviation.
