Meaning ONE-FACTOR APT: A special case of the arbitrage pricing theory that is derived from the one-factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear function of a single factor
More terms such as One-factor APT in Dictionary O.
- Definition Odd Lot:
- Examples A trading order for less than 100 shares of stock. Compare round lot one-factor apt definition.
- Definition Overvalued:
- Examples A stock price that is seen as too high according to the company's price-earnings ratio, expected earnings, or financial condition one-factor apt explain.
- Definition On-Floor Order:
- Examples equity securities. Security order originating with a member on the floor of an exchange when dealing with his or her own account, versus an upstairs order. Antithesis of off-floor order one-factor apt what is.
- Definition Overhang:
- Examples of general equities. Sizable block of securities or commodities contracts that, if released on the market, would put downward pressure on prices; prohibits buying activity that would otherwise one-factor apt meaning.
- Definition Operating Leverage:
- Examples Fixed operating costs, which are characterized as leverage because they accentuate variations in profits one-factor apt abbreviation.
