Finance ABC

Welcome back to Finance ABC. I’m your host, Emma Lai, and today we’re exploring a fascinating financial theory that provides a unique way of thinking about asset pricing: the Arbitrage Pricing Theory, or APT. This concept might not be as widely discussed as other financial models like the Capital Asset Pricing Model, or CAPM, but it’s incredibly useful for investors, portfolio managers, and finance enthusiasts who want a deeper understanding of how to assess and price different kinds of investments.