Systems theory

Definition:

A method of describing a complex structure introduced by Ludwig von Bertalanffy in the 1940s that relates the interaction of individual components of the structure to the functioning of the structure as a whole.

Investing Essentials


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

Term of the Day

Arbitrage Pricing Theory (APT)

An alternative model to the capital asset pricing model developed by Stephen Ross and based purely on arbitrage arguments. The APT implies that there are multiple risk factors that need to be taken... Read More

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