arbitrage pricing model

noun

An asset pricing model using one or more common factors to price returns. With only one factor, representing the market portfolio, it is called a single factor model. With two or more factors, it is called a multifactor model.

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Meanings

nounarbitrage pricing model (plural arbitrage pricing models)

plural arbitrage pricing models

  1. businessAn asset pricing model using one or more common factors to price returns. With only one factor, representing the market portfolio, it is called a single factor model. With two or more factors, it is called a multifactor model.

Translations

Finnish arbitraasihinnoittelumalli
  • arbitraasihinnoittelumallitype of asset pricing model
Cite this entry
APA

arbitrage pricing model. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/arbitrage%20pricing%20model

MLA

“arbitrage pricing model.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/arbitrage%20pricing%20model. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “arbitrage pricing model,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/arbitrage%20pricing%20model.

Source: arbitrage pricing model on Wiktionary, CC BY-SA 4.0.