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 same/different? What is the difference in interpretation.
Thanks.
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 same/different? What is the difference in interpretation.
Thanks.