What is capital asset pricing model and arbitrage pricing theory? Differentiate between them.

Introduction The Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) are two widely used models in financial management for determining the expected return on investments and assessing risks. While both models aim to price assets considering their risk, they are based on different assumptions and methodologies. This article explores the concepts of CAPM […]

What is capital asset pricing model and arbitrage pricing theory? Differentiate between them. Read More »