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Arbitrage Quote by Merton Miller

“Arbitrage proof has since been widely used throughout finance and economics.” quote by Merton Miller
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“Arbitrage proof has since been widely used throughout finance and economics.”

Merton Miller

About This Quote

Source Academic Paper, 1978

Arbitrage pricing theory provides a framework for asset valuation across markets.

In simple terms: Arbitrage theory values assets.

Key Takeaway

Apply APT to assess investment risk and return.

Themes

finance economics valuation risk

Mood

analytical pragmatic

Type

technical educational

When to use this quote

  • portfolio management
  • investment analysis
  • risk assessment

Key Concepts

arbitrage market efficiency factor models

Questions to Reflect On

  • How reliable is APT in volatile markets?
  • What factors improve its accuracy?
A Different Perspective

Assumes efficient markets, which may not hold.

2.7 out of 5 (10 ratings)

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