zero-net-investment
Chapter 06 – Efficient Diversification
Chapter six
efficient diversification
Chapter Overview
In this chapter
‹#›
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Table 7.2 Multifactor Models and CAPM
‹#›
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
7.5 Arbitrage Pricing Theory
Arbitrage
Relative mispricing creates riskless profit
Arbitrage Pricing Theory (APT)
Risk-return relationships from no-arbitrage considerations in large capital markets
Well-diversified portfolio
Nonsystematic risk is negligible
Arbitrage portfolio
Positive return
