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 |
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Bond University
2016-05-01
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| Series: | Spreadsheets in Education |
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| Online Access: | http://epublications.bond.edu.au/ejsie/vol9/iss1/4 |