International Asset Pricing Model (IAPM)


A model that applies the basic principles of the traditional Capital Asset Pricing Model to international investment portfolios in which all investors have homogenous expectations and participate equally in the markets with equal access to costless information, market prices and risk-free money. The international version incorporates the theory that investors from different countries have purchasing power parity and the same consumption basket.
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international arbitrage International Association of Financial Engineers (IAFE)