Arbitrage Pricing Theory - Arbitrage and The APT

Arbitrage and The APT

Arbitrage is the practice of taking positive expected return from overvalued or undervalued securities in the inefficient market without any incremental risk and zero additional investments.

Read more about this topic:  Arbitrage Pricing Theory

Famous quotes containing the word apt:

    “Three words that still have meaning, that I think we can apply to all professional writing, are discovery, originality, invention. The professional writer discovers some aspect of the world and invents out of the speech of his time some particularly apt and original way of putting it down on paper.”
    —John Dos Passos (1896–1970)