Archive for the 'Economics' Category

Arbitrage Pricing Theory

Sunday, April 4th, 2010

Very succint definition of arbitrage in Bodie, Kane and Marcus “Essentials of Investments” : Arbitrage is the act of exploiting the mispricing of 2 or more securities to achieve risk-free profits. I am preparing for the FRM Risk Management exam, and I have to read the following reading on the arbitrage pricing theory (APT) : Expected [...]