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Tides arrive at the same location at the same time each day.
Arbitrage Pricing Theory
A financial model that determines the theoretical return of an asset by considering multiple macro-economic factors or theoretical market indices.
Systematic Risk Factors
External risks that affect an entire market or asset class, and cannot be mitigated through diversification.
CAPM
Capital Asset Pricing Model; a model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.
Arbitrage Pricing Theory
A financial model that estimates the price of securities by considering the relationship between their expected returns and macroeconomic factors.
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