Big dictionary of business and management. 2014.
arbitrage pricing theory — APT A model proposed by Stephen Ross in 1976 for calculating security returns in terms of the arbitrage free condition It is an alternative to the capital asset pricing model (CAPM). APT assumes a number of different systematic risk factors… … Big dictionary of business and management
Arbitrage — For the upcoming film, see Arbitrage (film). Not to be confused with Arbitration. In economics and finance, arbitrage (IPA: /ˈɑrbɨtrɑːʒ/) is the practice of taking advantage of a price difference between two or more markets: striking a… … Wikipedia
no-arbitrage condition — See arbitrage free condition … Big dictionary of business and management
Free-market anarchism — Part of a series on Libertarianism … Wikipedia
Heston model — In finance, the Heston model is a mathematical model describing the evolution of the volatility of an underlying asset. It is a stochastic volatility model: such a model assumes that the volatility of the asset is not constant, nor even… … Wikipedia
anomaly — An opportunity for abnormal returns in financial markets. If markets are efficient there should be no anomalies (see efficient markets hypothesis), and the assumption that this will indeed be the case dictates the pricing of many financial… … Big dictionary of business and management
Rational pricing — is the assumption in financial economics that asset prices (and hence asset pricing models) will reflect the arbitrage free price of the asset as any deviation from this price will be arbitraged away . This assumption is useful in pricing fixed… … Wikipedia
Black–Scholes — The Black–Scholes model (pronounced /ˌblæk ˈʃoʊlz/[1]) is a mathematical model of a financial market containing certain derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives the price of European … Wikipedia
Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Risk-neutral measure — In mathematical finance, a risk neutral measure, is a prototypical case of an equivalent martingale measure. It is heavily used in the pricing of financial derivatives due to the fundamental theorem of asset pricing, which implies that in a… … Wikipedia
