The acronym APT stands for:
A)arbitrage pricing techniques.
B)absolute profit theory.
C)arbitrage pricing theory.
D)asset pricing theory.
E)assured price techniques.

Question

Quizplus · Accepted Answer

APT refers to Arbitrage Pricing Theory. It is a financial model used to explain the price of an asset with the assumption that it is affected by various macroeconomic factors. It explains that the expected return of an asset can be modeled as a linear function of various macroeconomic factors, along with a risk premium.

The Acronym APT Stands For