Finance

The Capital Asset Pricing Model

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The capital asset pricing model (CAPM) is an absurd model--its assumptions and its predictions/conclusions have no basis in the real world. With the vast amount of information and research that has been done, it is quite clear that the CAPM does not "explain facts or events," nor does it "describe the past, present, or future state of something."
Bibliographic citation: Fernández, Pablo, "The Capital Asset Pricing Model". In: Bruno S. Frey and David Iselin. Economic Ideas You Should Forget. Springer International Publishing, 2017. pp 47 - 50

Reference: 10.1007/978-3-319-47458-8_19 (DOI)
Date: 10/03/2017
Author(s): Fernández, Pablo
Document type: Chapter
Editor(s): Cátedra PricewaterhouseCoopers de Finanzas
Languages: English