Title

Differentiating bullish from bearish factors in the arbitrage pricing theory

Document Type

Journal article

Source Publication

American Journal of Business Education

Publication Date

9-2010

Volume

3

Issue

9

First Page

13

Last Page

16

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

Print ISSN

19422504

E-ISSN

19422512

Publisher Statement

Copyright © 2010 Clute Institute for Academic Research

Full-text Version

Publisher’s Version

Recommended Citation

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