arbitrage pricing model

EnglishEdit

NounEdit

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 termsEdit

Last modified on 16 June 2013, at 18:44