arbitrage pricing theory

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00:55 Jul 17, 2020
English to Hungarian translations [PRO]
Bus/Financial - Economics
Additional field(s): Business/Commerce (general), Economics, Finance (general), Marketing / Market Research, Social Science, Sociology, Ethics, etc.
English term or phrase: arbitrage pricing theory
Definition from The Economist:
The arbitrage pricing theory says that the price of a financial asset reflects a few key risk factors, such as the expected rate of interest, and how the price of the asset changes relative to the price of a portfolio of assets. If the price of an asset happens to diverge from what the theory says it should be, arbitrage by investors should bring it back into line.

Example sentence(s):
  • The Arbitrage Pricing Theory provides more flexibility than the CAPM; however, the former is more complex. The inputs that make the arbitrage pricing model complicated are the asset’s price sensitivity to factor n (βn) and the risk premium to factor n (RPn). Corporate Finance Institute
  • Over the years, arbitrage pricing theory has grown in popularity for its relatively simpler assumptions. However, arbitrage pricing theory is a lot more difficult to apply in practice because it requires a lot of data and complex statistical analysis. Investopedia
  • The test's results show that, within the scope of the methodology and data employed, the Arbitrage Pricing Theory (APT) does hold in the very emerging stock market of Thailand, while the CAPM (Capital Asset Pricing Model) fails to do so. IDEAS
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GBK economics and finances specialistsGBK economics and finances specialists


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Summary of translations provided
5 +1arbitrázsárazás elmélete
Agnes Torok


  

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10 days   confidence: Answerer confidence 5/5 peer agreement (net): +1
arbitrázsárazás elmélete


Definition from uni-corvinus.hu:
"az arbitrált árfolyamok elmélete viszonylag kevés számú és realisztikus feltételből vezeti le a portfóliók kockázat-hozam összefüggését. A modell alapgondolata az, hogy csak néhány alapvető faktor befolyásolja az eszközök hosszú távú átlagos hozamát."

Example sentence(s):
Agnes Torok
Hungary
Local time: 19:29
Native speaker of: Native in HungarianHungarian

Votes in favor of/against selecting this as the best translation of the term asked
Yes  Noémi Németh
87 days
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