Arbitrage Quote by Merton Miller
“Arbitrage proof has since been widely used throughout finance and economics.”
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.
Apply APT to assess investment risk and return.
Themes
Mood
Type
When to use this quote
- portfolio management
- investment analysis
- risk assessment
Key Concepts
Questions to Reflect On
- How reliable is APT in volatile markets?
- What factors improve its accuracy?
Assumes efficient markets, which may not hold.