arbitrage pricing model

English

Noun

arbitrage pricing model (plural arbitrage pricing models)

1. (finance) An asset pricing model using one or more common factors to price returns. With only one factor, representing the market portfolio, it is called a single factor model. With two or more factors, it is called a multifactor model.

Related terms

• arbitrage pricing theory
• capital asset pricing model

Translations

type of asset pricing model

• Finnish: arbitraasihinnoittelumalli