Eric Zhang
New Member
Hi,
I got confused about the relationship between multifactor model and APT. As my understanding, multifactor model is the first step of APT, but how could multifactor model become APT? Is it because of no arbitrage opportunity?
If we say a portfolio is no arbitrage opportunity, is that means this portfolio is well-diversified?
I'm totally lost here!
Thanks so much!
I got confused about the relationship between multifactor model and APT. As my understanding, multifactor model is the first step of APT, but how could multifactor model become APT? Is it because of no arbitrage opportunity?
If we say a portfolio is no arbitrage opportunity, is that means this portfolio is well-diversified?
I'm totally lost here!
Thanks so much!
