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Risk arbitrage
aimlexchange.com/search/wiki/page/Risk_arbitrageRisk arbitrage, also known as merger arbitrage, is an investment strategy that speculates on the successful completion of mergers and acquisitions. An

Arbitrage
aimlexchange.com/search/wiki/page/Arbitrageprice. In principle and in academic use, an arbitrage is riskfree; in common use, as in statistical arbitrage, it may refer to expected profit, though losses

Riskneutral measure
aimlexchange.com/search/wiki/page/Riskneutral_measurethe unique riskneutral measure. Such a measure exists if and only if the market is arbitragefree. The easiest way to remember what the riskneutral measure

Arbitrage pricing theory
aimlexchange.com/search/wiki/page/Arbitrage_pricing_theoryfinance, arbitrage pricing theory (APT) is a general theory of asset pricing that holds that the expected return of a financial asset can be modeled as a

Fundamental theorem of asset pricing
aimlexchange.com/search/wiki/page/Fundamental_theorem_of_asset_pricingpossibility of loss. Though arbitrage opportunities do exist briefly in real life, it has been said that any sensible market model must avoid this type of

Statistical arbitrage
aimlexchange.com/search/wiki/page/Statistical_arbitragestatistical arbitrage (often abbreviated as Stat Arb or StatArb) is a class of shortterm financial trading strategies that employ mean reversion models involving

Arbitrage betting
aimlexchange.com/search/wiki/page/Arbitrage_bettingBetting arbitrage ("miraclebets", "surebets", sports arbitrage) is an example of arbitrage arising on betting markets due to either bookmakers' differing

Model risk
aimlexchange.com/search/wiki/page/Model_riskmitigating model risk resulting from volatility uncertainty. Buraschi and Corielli formalise the concept of 'time inconsistency' with regards to noarbitrage models

Capital asset pricing model
aimlexchange.com/search/wiki/page/Capital_asset_pricing_modelportfolio. The model takes into account the asset's sensitivity to nondiversifiable risk (also known as systematic risk or market risk), often represented

Rational pricing
aimlexchange.com/search/wiki/page/Rational_pricinghence asset pricing models) will reflect the arbitragefree price of the asset as any deviation from this price will be "arbitraged away". This assumption