Which of the following is an asset pricing model based on the ideas that an asset’s
returns can be predicted using the relationship between that asset and many common
risk factors?
a) Arbitrage pricing theory
b) Arbitrage risk theory
c) Arbitrage asset theory
d) Risk pricing theory
returns can be predicted using the relationship between that asset and many common
risk factors?
a) Arbitrage pricing theory
b) Arbitrage risk theory
c) Arbitrage asset theory
d) Risk pricing theory