Stephen, 1980, "An Empirical Investigation of the Arbitrage Pricing Theory
," Journal of Finance, Vol.
2010), 'Bayesian Variable Selection and Model Averaging in the Arbitrage Pricing Theory
Model,' Computational Statistics and Data Analysis, 54 (2010), pp.
Similarly, the same arbitrage arguments would apply to the Arbitrage Pricing Theory
This text examines both sets of issues and applications to regression models, including arbitrage pricing theory
models, covering the testing process for econometric models, testing for block effects, model selection procedures, information criteria and controlled information criteria for model selection, the arbitrage pricing model and model selection for testing the arbitrage pricing theory
, and case studies for modeling the risk premium of listed stocks.
A subsequent more general development is the Arbitrage Pricing Theory
(APT) [Ross, 1976; Roll and Ross, 1980].
Valuation of the firm can be done through several theoretical models such as the Gordon Dividend Growth Model, the Capital Asset Pricing Model (CAPM), and the Arbitrage Pricing Theory