Category: where
E(r) = ²1 x E (r1) + ²2 x E (r2) +&&& + ²n x E (rn)
pp. 204-208). Modes of APT theory is- E(r) = ²1 x E (r1) + ²2 x E (r2) +&&& + ²n x E (rn) it has named as the APT (Arbitrage Pricing Theory). Considering the investors preferences assumptions of this model is highly focused on expected returns equilibrium theory for the securities and this is…