Advantages and Disadvantages of CAPM vs. APT Comparison Essay by ResearchRiter

Advantages and Disadvantages of CAPM vs. APT
A comparison of the capital asset pricing model (CAPM) and the arbitrage pricing theory (APT).
# 121708 | 1,250 words | 7 sources | MLA | 2008 | US
Published on Dec 01, 2008 in Business (Finance, Investment and Banking) , Economics (General)


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Description:

The paper defines CAPM and APT, comparing their advantages and disadvantages, and recommends APT for most applications, recognizing that significant resources may be required to support this.

From the Paper:

"Finance professionals and investors have long sought reliable methods to determine which assets to buy and sell in order to make a profit. While various theories and techniques have been identified, tried and tested, a single approach that can be used in every situation with positive results has yet to be found. Two approaches; the capital asset pricing model (CAPM) and arbitrage pricing theory (APT) are commonly used. Both have their advantages and disadvantages as they attempt to quantify what some consider..."

Cite this Comparison Essay:

APA Format

Advantages and Disadvantages of CAPM vs. APT (2008, December 01) Retrieved August 08, 2022, from https://www.academon.com/comparison-essay/advantages-and-disadvantages-of-capm-vs-apt-121708/

MLA Format

"Advantages and Disadvantages of CAPM vs. APT" 01 December 2008. Web. 08 August. 2022. <https://www.academon.com/comparison-essay/advantages-and-disadvantages-of-capm-vs-apt-121708/>

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