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Complex statistical and mathematical theory is an approach, which is classified as

A. arbitrage pricing theory

B. arbitrage risk theory

C. arbitrage dividend theory

D. arbitrage market theory

Answer: Option A

Solution (By Examveda Team)

Complex statistical and mathematical theory is an approach, which is classified as arbitrage pricing theory. Arbitrage pricing theory (APT) is a multi-factor asset pricing model based on the idea that an asset's returns can be predicted using the linear relationship between the asset’s expected return and a number of macroeconomic variables that capture systematic risk.

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