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Stephen Ross
(redirected from Stephen Ross (disambiguation))

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Stephen Ross
A neoclassical economist who developed the arbitrage pricing model in the mid 1970s. The arbitrage pricing model seeks to calculate the appropriate price of an asset while taking into account systemic risks common across an asset class. Any security with a price different from the one predicted by the model is considered "mispriced" and is an arbitrage opportunity. Ross also had a hand in developing the binomial option pricing model, which seeks to price options accurately in situations where other models do not easily apply. He is a professor at the Massachusetts Institute of Technology.


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