One factor APT


 

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One factor APT

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.



One factor APT

Similar Matches

Factor intensity reversal

Factor intensity reversal

A property of the technologies for two industries such that their ordering of relative factor intensities is different at different factor prices. For example, one industry may be relatively capital intensive compared to the other at high relative wages and labor intensive at low relative wages. Some propositions of the Heckscher-Ohlin Model require the absence of FIRs.


Pool factor

Pool factor

The outstanding principal balance divided by the original principal balance with the result expressed as a decimal. Pool factors are published monthly by the Bond Buyer newspaper for Ginnie Mae, Fannie Mae, and Freddie Mac (Federal Home Loan Mortgage Corporation) MBSs.


Factor proportions

Factor proportions

1. The ratios of factors employed in different industries. See factor intensities. 2. The ratios of factors with which different countries are endowed. See factor endowments.


Discount factor

Discount factor

Present value of $1 received at a stated future date.


Scarce factor

Scarce factor

The factor in a country's endowment with which it is least well endowed, relative to other factors, compared to other countries. May be defined by quantity or by price.


Further Suggestions

International factor movement
Factor share
Factor-price space
Present value factor
Single factor model
Net benefit to leverage factor
factoring
Factor price frontier
Factor movement
Factor-saving
Multifactor model
Factor content
Risk factor
Factor accumulation
Factor bias
Old line factoring
Annuity factor
Factor abundance
Factor content pattern of trade
Factor Price Equalization Theorem
Factor intensity
Total factor productivity
Conversion factors
Factor augmenting
Factor market


 
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