What are the difference between CAPM and APT
What are the difference between CAPM and APT?
Expert
The main differences among CAPM and APT are that CAPM is based upon equilibrium arguments to find to the concept of the Market Portfolio, while APT is based upon a simple estimated arbitrage argument. Though, APT talks about arbitrage, this should be contrasted with the arbitrage arguments we notice in spot versus forward and into option pricing. These are genuine specific arbitrages (albeit the latter being modelled dependent). While, APT the arbitrage is only estimated.
Normal 0 false false
Explain in brief: IOS (investment opportunity schedule). How can IOS (investment opportunity schedule) help financial managers in making business decisions?
Explain identical distributions required or not in the central limit theorem.
You need to price an option that is paid for within instalments, and you can stop paying and lose the option. Which numerical method should you use?
How approximately is future profit calculated?
How are foreign exchange transactions among international banks settled?The interbank market is network of correspondent banking relationships, along with large commercial banks maintaining demand deposit accounts along with one another, known a
What is intensity?
Give explanation: The banks try to make short-term self-liquidating loans to businesses.
Explain the uncertain volatility.
What is Meant by ‘Complete’ and ‘Incomplete’ Markets?
18,76,764
1922131 Asked
3,689
Active Tutors
1411977
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!