The question is related to the following point of discussion. "Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) are both linear pricing models but they seem to adopt very different approach to asset pricing." so why linearity in first place and then ofcourse the difference in the CAPM and APT approach.
2007-01-09 19:14:07 · 2 answers · asked by jitendrad 1 in Business & Finance ➔ Investing
The dimension of time makes it linear. Prices are numerics linked to a discrete moment of time. Time is a function of all of such analysis. Therefore it must be linear.
2007-01-10 04:36:36 · answer #1 · answered by Rabbit 7 · 0⤊ 0⤋
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2016-05-23 02:36:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋