Essays on Arbitrage Pricing Theory

Arbitrage Pricing Theory: Opportunities And Limitations

Introduction Imagine travelling and observing that apples in one region of the country are cheaper compared to the prices charged in your home region. Given that scenario, a rational human being will seek to maximize their “level of…utility [as they] would rather be better off than worse off” (Kenton, 2018). Subsequently, the rational individual will...
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