Examlex
The better the ________ the various chain participants, the better the ________.
Security Market Line
A graphical representation in the Capital Asset Pricing Model that shows the relationship between the expected return of an investment and its beta, representing risk.
APT
Stands for Arbitrage Pricing Theory, a model that predicts a security's returns using the linear relationship between its expected return and macroeconomic factors.
Factor Intensity
The measure of how much of a certain factor of production (labor, capital, etc.) is used in the production of a good or service.
APT Model
Arbitrage Pricing Theory Model, an alternative to the Capital Asset Pricing Model (CAPM), asserts that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indexes.
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