Tag: Capital Asset Pricing Model
The Efficient Frontier is a concept from Modern Portfolio Theory representing a set of optimal investment portfolios that offer the highest possible expected return for a given level of risk. It’s a valuable tool for balancing risk and return in investment strategy.
Arbitrage is a financial strategy of profiting from price differences in separate markets. It involves buying low in one market and selling high in another. This tactic, which requires market knowledge and mathematical models, contributes to market efficiency and price equilibrium.