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Showing 1 to 20 of 23 for “"Arbitrage pricing theory"”.

  1. The Arbitrage pricing theory: an assessment of the robustness of empirical techniques employed under conditions of thin trading and in the presence of non-normalities

    … objections of Shanken (1982), proponents of the Arbitrage Pricing Theory have claimed that the theory offers a testable alternative to the Capital Asset Pricing Model. Over the last decade however, empirical research into the APT has not proved to be universally successful, particularly when …

    cape-town Repository record for The Arbitrage pricing theory: an assessment of the robustness of empirical techniques employed under conditions of thin trading and in the presence of non-normalities (opens in a new tab)

  2. Non-linear dynamics and stock return predictability on the JSE securities exchange of South Africa

    Recent South African asset pricing research has generally established a preference for the arbitrage pricing theory of Ross (1976) over the capital asset pricing model of Sharpe (1964) and others. However, both the APT and the CAPM are single-period linear models based on the assumption that …

    cape-town Repository record for Non-linear dynamics and stock return predictability on the JSE securities exchange of South Africa (opens in a new tab)

  3. Alternative Methods for Determining the Expected Market Risk Premium: Theory and Evidence

    … the study demonstrates that the asset pricing model under uncertain inflation can be derived from both the mean-variance utility maximization approach and the Arbitrage Pricing Theory approach.

    uiuc Repository record for Alternative Methods for Determining the Expected Market Risk Premium: Theory and Evidence (opens in a new tab)

  4. Performance and performance persistance in South African General Equity unit trusts, a test of South African market efficiency

    … Using Jensen's alpha in both a Capital Asset Pricing Model (CAPM) framework and a 2-Factor Arbitrage Pricing Theory (APT) model, unconditional evidence is presented on the performance of General Equity unit trusts.

    cape-town Repository record for Performance and performance persistance in South African General Equity unit trusts, a test of South African market efficiency (opens in a new tab)

  5. Two Papers of Financial Engineering Relating to the Risk of the 2007--2008 Financial Crisis

    … part, we construct the Spatial Capital Asset Pricing Model and the Spatial Arbitrage Pricing Theory to characterize the risk premiums of futures contracts on real estate assets. We also provide rigorous econometric analysis of the new models. Empirical study shows there exists significant …

    columbia-diss Repository record for Two Papers of Financial Engineering Relating to the Risk of the 2007--2008 Financial Crisis (opens in a new tab)

  6. Valuing risky income streams in incomplete markets

    … Geman and Madam [7], which combines elements of arbitrage pricing theory with expected utility maximisation to decide whether a risky investment opportunity is worth undertaking or not. An account of the state of the art of pricing and hedging in incomplete markets is followed by a detailed …

    cape-town Repository record for Valuing risky income streams in incomplete markets (opens in a new tab)

  7. Measuring the risk of investment in Latin America's emerging markets

    This paper uses a multi-factor Arbitrage Pricing model to measure the systematic risks of U.S. Foreign Direct Investments (FDI) in the largest emerging markets of Latin America: Argentina, Brazil, Chile, and Mexico. The Arbitrage Pricing Theory (APT) states that returns on investments are exposed …

    vt Repository record for Measuring the risk of investment in Latin America's emerging markets (opens in a new tab)

  8. Pricing Offshore Services: Evidence from the Paradise Papers

    … con_dential electronic documents. A dominant theory presented by Neal (2014) and Gri_th, Miller and O'Connell (2014) concerns the use of these offshore services in the relocation of intellectual property for the purposes of compliance, privacy and tax avoidance. Building on the work of …

    cape-town Repository record for Pricing Offshore Services: Evidence from the Paradise Papers (opens in a new tab)

  9. The cost of equity capital for REITs : an examination of three asset-pricing models

    … of this study is to determine a reliable asset-pricing model that can be used in practice to estimate the cost of equity capital for Real Estate Investment Trusts (REITs). While the cost of equity is an important concept for all industries, it has particular relevance for REITs, as the current …

    mit Repository record for The cost of equity capital for REITs : an examination of three asset-pricing models (opens in a new tab)

  10. Testing the risk and return trade-off in the Athens stock exchange

    … specific variables with the application of asset pricing models as well as the employment of (G)ARCH models, unit root and cointegration analysis. A theoretical and empirical review on the models is presented and, more specifically, there is an empirical examination of the validity of the Capital …

    greenwich Repository record for Testing the risk and return trade-off in the Athens stock exchange (opens in a new tab)

  11. Separation of precious metal beta from a JSE multivariate model with macroeconomic variables

    … Stock Exchange (JSE) framed within the Arbitrage Pricing Theory (APT). The APT has been set up such that it can be able to separate the beta for the precious metal factor within the model. The process goes via the investigation of macrovariables (with precious metals used as one of the …

    cape-town Repository record for Separation of precious metal beta from a JSE multivariate model with macroeconomic variables (opens in a new tab)

  12. Underlying Risk Dimensions in the Restaurant Industry: A Strategic Finance Approach

    … was represented by the five variables of Arbitrage Pricing Theory of Chen et al. (1986). Time series-analysis regression of the portfolio of 75 restaurant firms, for the 1993-2004 period, revealed that macroeconomic variables explained a significant portion of restaurant stock returns. On …

    vt Repository record for Underlying Risk Dimensions in the Restaurant Industry: A Strategic Finance Approach (opens in a new tab)

  13. On some topics of financial theory

    … factor structure is equivalent to assumption of Arbitrage Pricing Theory (APT). Novel estimation procedure and tests for approximate factor structure of series of sample covariance matrices with increasing order are developed from APT research. Time/crosssection double-limit asymptotics is …

    mit Repository record for On some topics of financial theory (opens in a new tab)

  14. Firm-specific attributes and the cross-section of JSE securities exchange returns

    The empirical counterpart of a theory of asset prices is a model of the cross-section of security returns. Empirical tests of the Capital Asset Pricing Model (CAPM) of Sharpe (1964), Lintner (1965), Mossin (1966) and Black (1972) using cross-sectional methodologies have identified numerous cases …

    cape-town Repository record for Firm-specific attributes and the cross-section of JSE securities exchange returns (opens in a new tab)

  15. Style anomalies on the Toronto Stock Exchange : a univariate, multivariate, style timing and portfolio sorting analysis

    … has found inconsistencies in the Capital Asset-pricing Model (CAPM) of Sharpe (1964), Lintner (1965), and Black (1972) and Ross's (1976) Arbitrage Pricing Theory (APT). Numerous attempts to explore the validity of these theories of modern finance have led to the identification of various firm …

    cape-town Repository record for Style anomalies on the Toronto Stock Exchange : a univariate, multivariate, style timing and portfolio sorting analysis (opens in a new tab)

  16. Market Betas on the JSE: Factor selection, estimation and empirical evaluation

    … necessary for inclusion in the appropriate Arbitrage Pricing Theory (APT) model. Based on the promax rotated factor loadings, it is argued that the Financials (J580) and Basic Materials (J510) indices ought be used as the appropriate observable index proxies for the first and second factors …

    cape-town Repository record for Market Betas on the JSE: Factor selection, estimation and empirical evaluation (opens in a new tab)

  17. The relationship between various risk factors and the cost of equity premium implied by analysts' forecasts on the New York Stock Exchange

    … decisions. This study, an implementation of Arbitrage Pricing Theory, attempts to create a parsimonious model of factors that are associated with the implied cost of equity premium utilised by equity analysts on the New York Stock Exchange ("NYSE"). After limiting the sample to NYSE-listed …

    cape-town Repository record for The relationship between various risk factors and the cost of equity premium implied by analysts' forecasts on the New York Stock Exchange (opens in a new tab)

  18. The behaviour of style anomalies in worldwide sector indices : a univariate and multivariate analysis

    … and after risk adjustment with the Capital Asset Pricing Model (CAPM), the Arbitrage Pricing Theory (APT) model and Solnik's (2000) version of the International CAPM (ICAPM). The ICAPM is found to be the best performing model but, in general, the evidence does not support covariance-based models …

    cape-town Repository record for The behaviour of style anomalies in worldwide sector indices : a univariate and multivariate analysis (opens in a new tab)

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