Capital Asset Pricing Model, Arbitrage Pricing Theory and Betas

Abstract: This 6 page paper is written in 2 parts. The first part looks at Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) and considers which model would be most appropriate for a financial professional to use. To assess this both models are described and the evidence to support them considered. The second part examines what is meant by a beta and applies it to a real company; Sento Corp, and then considers which other companies may be chosen if the criteria was a similar beta. The bibliography cites 5 sources.

Filename: TEaptcapm.rtf

Pages: 6

---

Catagory: Money & Banking / Corporate Finance

Subcatagory: Accounting & Personal Finance

---