arbitrage pricing model

Definition from Wiktionary, the free dictionary
Jump to: navigation, search

English[edit]

Noun[edit]

arbitrage pricing model (uncountable)

  1. (finance) 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.

Related terms[edit]