Why is the concept of arbitrage central to the asset pricing mechanism of APT?

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:53 AM

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Why is the concept of arbitrage central to the asset pricing mechanism of APT?

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It is the actions of investors forming arbitrage portfolios that for...View the full answer

Fundamentals of Investments

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