Search for a term:

APT


Definition
Arbitrage Pricing Theory. An alternative asset pricing model to the Capital Asset Pricing Model. Unlike the Capital Asset Pricing Model, which specifies returns as a linear function of only systematic risk, Arbitrage Pricing Theory may specify returns as a linear function of more than a single factor.Thus, there is no clear risk-return trade-off in this model.

Related Terms on BusinessDictionary

capital asset pricing model (CAPM)

Related Personal Finance Articles

Loading...

APT in the news

Loading...

APT is ...

... part of the Strategies subject.

Search volume for APT

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z