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Betas in APT model vs. Betas in E[r] pricing equation - Bodie
Hello, could you please explain the difference in Betas that are used in the APT model: r(I)=E[r(I)] + B(1)F(1) +B(2)F(2) + ... +B(k)F(k) +e(I) and the Betas that are used in the equation to retrieve E[r(I)]: E[r(I)] = r(f) + B(1)RP(1) + B(2)RP(2) + ... + B(k)RP(k) Are they the...- curler
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- Forum: P1.T1. Foundations of Risk (20%)