Arbitrage Pricing Theory: Impact on Global Investment Strategies
Discover how Arbitrage Pricing Theory (APT) influences global investment strategies. Learn its role in portfolio management, risk assessment, and market opportunities. Arbitrage Pricing Theory (APT) is a multi-factor asset pricing model developed by economist Stephen Ross in 1976. Unlike the Capital Asset Pricing Model (CAPM), which relies on a single risk factor (market beta), APT accounts for multiple economic and financial risk factors influencing asset returns.