Preferences , Continuity , and the Arbitrage Pricing Theory

@inproceedings{Jarrow1998PreferencesC,
  title={Preferences , Continuity , and the Arbitrage Pricing Theory},
  author={Robert Jarrow},
  year={1998}
}
This article investigates the structure onpreferences required to derive Ross’s arbitrage pricing theory (APT). It is shown that only ordinalpreferences are required. In particular, the APT does not require that agents possess preferences representable as riskaverse expected utility functions. This characteristic of the APT is not shared by the standard equilibriumbased capital asset pricing models. 
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