The Arbitrage Pricing Model: A Pedagogic Derivation and a Spreadsheet-Based Illustration
This paper derives, from a pedagogic perspective, the Arbitrage Pricing Model, which is an important asset pricing model in modern finance. The derivation is based on the idea that, if a self-financed investment has no risk exposures, the payoff from the investment can only be zero. Microsoft Excel...
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Format: | Article |
Language: | English |
Published: |
Bond University
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Series: | Spreadsheets in Education |
Online Access: | http://sie.scholasticahq.com/article/4656-the-arbitrage-pricing-model-a-pedagogic-derivation-and-a-spreadsheet-based-illustration.pdf |