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Article
Differentiating bullish from bearish factors in the arbitrage pricing theory
American Journal of Business Education
  • Joseph CHENG, Ithaca College United States
Document Type
Journal article
Publication Date
9-1-2010
Publisher
Clute Institute for Academic Research
Keywords
  • Arbitrage Pricing Theory,
  • APT
Abstract
This is a teaching note on a proposed approach that will correct a common flaw in the way the return-generating process within the APT framework is illustrated in textbooks. The problem can be resolved by dichotomizing the risk factors into two kinds. Based on this approach, the author eliminated the main source of confusion and developed an alternative way to teaching this important financial theory in a comprehensive and intuitive manner.
DOI
10.19030/ajbe.v3i9.475
E-ISSN
19422512
Publisher Statement
Copyright © 2010 Clute Institute for Academic Research
Full-text Version
Publisher’s Version
Citation Information
Cheng, J. (2010). Differentiating bullish from bearish factors in the Arbitrage Pricing Theory. American Journal of Business Education (AJBE), 3(9), 13-16. doi: 10.19030/ajbe.v3i9.475