One-factor APT

Definition:

A special case of the arbitrage pricing theory that is derived from the one-factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear function of a single factor.

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Central Counterparty Clearing House

An organization in European countries that helps facilitate trading done in European derivatives and equities market.

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