Reference Variables, Factor Structure, and the Approximate Multibeta Representation.

A-Tier
Journal: Journal of Finance
Year: 1992
Volume: 47
Issue: 4
Pages: 1303-14

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The arbitrage pricing theory implies that if asset returns have a factor structure, then an approximate multibeta representation holds with respect to the factors as reference variables. This paper assumes that asset returns satisfy a factor structure and derives a condition under which the approximate multibeta representation holds with respect to a set of reference variables that may not be the factors. This condition is that the regression matrix of the reference variables on the factors is nonsingular. Implications for the testability of the arbitrage pricing theory are also discussed. Copyright 1992 by American Finance Association.

Technical Details

RePEc Handle
repec:bla:jfinan:v:47:y:1992:i:4:p:1303-14
Journal Field
Finance
Author Count
1
Added to Database
2026-01-29