IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v70y1988i2p359-365..html
   My bibliography  Save this article

Arbitrage Pricing, Capital Asset Pricing, and Agricultural Assets

Author

Listed:
  • Louise M. Arthur
  • Colin A. Carter
  • Fay Abizadeh

Abstract

A new asset pricing model, the arbitrage pricing theory, has been developed as an alternative to the capital asset pricing model. The arbitrage pricing theory model is used to analyze the relationship between risk and return for agricultural assets. The major conclusion is that the arbitrage pricing theory results support previous capital asset pricing model findings that the estimated risk associated with agricultural assets is low. This conclusion is more robust for the arbitrage pricing theory application because it provides a better explanation of the relationship between risk and returns than does the capital asset pricing model.

Suggested Citation

  • Louise M. Arthur & Colin A. Carter & Fay Abizadeh, 1988. "Arbitrage Pricing, Capital Asset Pricing, and Agricultural Assets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 359-365.
    • Handle: RePEc:oup:ajagec:v:70:y:1988:i:2:p:359-365.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1242076
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Johnson, R.W.M., 1992. "Risk and the Farm Firm: A Corporate Finance View," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(01), pages 1-13, April.
    2. Dehong Gu, 1996. "Capital Asset Pricing And Agricultural Assets In England And Wales," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 99-108, January.
    3. Miller, Lynn H. & Sherrick, Bruce J., 1991. "An Examination Of Farm Real Estate Return Definitions. Inflationary Effects, And The Riskiness Of Nonland Farm Equity," Illinois Agricultural Economics Staff Paper 244668, University of Illinois at Urbana-Champaign, Department of Agricultural and Consumer Economics.
    4. Li, Xin, 2016. "The Farmland Valuation Revisited," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-14, April.
    5. Dahl, Cody P. & Gunderson, Michael A. & Moss, Charles B., 2011. "Assessing the Rationality of Farmland Price Movements," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103827, Agricultural and Applied Economics Association.
    6. Shiha, Amr N. & Chavas, Jean-Paul, 1992. "Capital Market Segmentation and US Farm Real Estate Pricing: A Study of the Effects of Barriers to Nonfarm Equity Capital in Agriculture," Staff Papers 200559, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    7. Feng, Xiaoguang, 2017. "Three essays on agricultural insurance and farm real estate investment," ISU General Staff Papers 201701010800007133, Iowa State University, Department of Economics.
    8. Justyna Franc-Dąbrowska & Magdalena Mądra-Sawicka & Joanna Bereżnicka, 2018. "Cost of Agricultural Business Equity Capital—A Theoretical and Empirical Study for Poland," Economies, MDPI, vol. 6(3), pages 1-15, June.
    9. Bjornson, Bruce & Innes, Robert, 1992. "Risk And Return In Agriculture: Evidence From An Explicit-Factor Arbitrage Pricing Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(2), pages 1-21, December.
    10. Antonios Antypas & Phoebe Koundouri & Nikolaos Kourogenis, 2011. "Volatility Trends and Optimal Portfolios: the Case of Agricultural Commodities," DEOS Working Papers 1113, Athens University of Economics and Business.
    11. Adelman, Irma & Berck, Peter, 1991. "Financial considerations of public inventory holdings in developing countries," CUDARE Working Papers 43739, University of California, Berkeley, Department of Agricultural and Resource Economics.
    12. Russo, Carlo & Sabbatini, Massimo, 2005. "Incentives to Efficient Investment Decisions in Agricultural Cooperatives," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24455, European Association of Agricultural Economists.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:70:y:1988:i:2:p:359-365.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.