This tutorial examines in detail the arbitrage pricing theory (APT) model, introduced by Stephen Ross in 1976 as a different equilibrium model that relaxes many of the assumptions of CAPM. The APT does not depend on the need for an underlying market portfolio, instead operating on the key assumption that the returns on a security are generated by an identical process to that used by single- and multi-index models. The benefits of this model also come with drawbacks; having compared the assumptions of the APT model with those of CAPM, this tutorial describes how the arbitrage process works and examines the merits of APT as a capital asset pricing model.

Objectives
The main topics covered are:

• Assumptions of the APT Model
• The APT Model
• An Appraisal of the APT Model

Registration Information

This short online course can be purchased individually or as part of the following discount scheme(s).

• Portfolio Theory

Once purchased, you will have access to this course for 365 Days.

Cost:

40.00

UK£ EUR US$   excluding including VAT*

Related CPD Courses

• Market Efficiency The Concept
• Market Efficiency The Evidence
• Performance Measurement Models
• Single Index and Multi Index Models
• The Capital Asset Pricing Model CAPM
• The Markowitz Model

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