Arbitrage Pricing Theory (APT) | CAPM vs APT | Portfolio Management

📘 Arbitrage Pricing Theory (APT) | Investment Analysis & Portfolio Management

This video provides a clear, comprehensive, and exam-oriented explanation of Arbitrage Pricing Theory (APT), specially designed for B.Com, BBA, M.Com, and MBA students. Arbitrage Pricing Theory is a key asset pricing model in Investment Analysis and Portfolio Management, and this lecture explains APT in a simple, structured, and conceptual manner, making it highly useful for university examinations and competitive exam preparation.

🔹 Topics Covered in This Video (APT in Detail):

Meaning of Arbitrage

Introduction to Asset Pricing Models

Types of Factors in APT

CAPM vs APT

Arbitrage Process

APT Formula of Expected Return (Multi-Factor Return Model)

Theoretical Foundations of APT

Assumptions of Arbitrage Pricing Theory

Expected Return under APT

Systematic Component of Return under APT

Risk under APT (Factor Risk and Diversification)

Beta under APT (Multiple Beta Coefficients)

Empirical Studies under APT

Advantages of APT over CAPM

Limitations of Arbitrage Pricing Theory

📚 Useful For:
✔ B.Com, BBA, M.Com & MBA students
✔ Investment Analysis & Portfolio Management subjects
✔ Financial Management exam preparation
✔ Competitive exams and quick revision
✔ Conceptual clarity with theory-based answers

👉 Watch till the end to gain a complete and in-depth understanding of Arbitrage Pricing Theory (APT) with clear explanations and comparisons with CAPM.

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