CAPM--The Capital Asset Pricing Model

CAPM is one of the most widely talked about and used models. Some claim it does not work while others believe it is best thing ever. This path looks at CAPM from then to now.

  1. Capital asset pricing model

    In finance, the capital asset pricing model ( CAPM) is used to determine a theoretically appropriate required rate of return of an asset,...

  2. CAPM: The First Factor of Investing

    A group of our advisors attended a conference this past fall sponsored by Dimensional Fund Advisors. In his talk,

  3. Capital Asset Pricing Model - Risk Encyclopedia

    This is very good William Sharpe ( 1964) published the capital asset pricing model (CAPM). Parallel work was also performed by Treynor...

  4. Revisiting the Capital Asset Pricing Model

    A good recap of where the world was BEFORE the Fama-French three-factor model. by Jonathan Burton Reprinted with permission from Dow...

  5. Fama-French Three Factor Model

    "The Fama-French Three Factor Model provides a highly useful tool for understanding portfolio performance....The Three Factor Model takes...

  6. Fama and French three-factor model

    The Fama and French three-factor model is used to explain differences in the returns of diversified equity portfolios. The model compares...

  7. Fama and French on early critics of their work

    A 1996 paper by Fama and French giving a more historical look at what was seen as the death knell for CAPM. (in essence this paper, it a...

  8. CAPM is dead? if not, at least in the ICU

    After Fama-French's work came out, the view (especially in academia) was that CAPM was on the way out.

  9. CAPM is CRAP, or, The Dead Parrot lives! - John Mauldin's Outside the Box - Investment Strategies, Analysis & Intelligence for Seasoned Investors.

    A practioner's attack of CAPM. Introduction Within human nature there is a tendency to search for reasoning or logic to validate our ...

  10. Estimation of Expected Return: CAPM vs Fama and French

    Most practitioners favour a one factor model (CAPM) when estimating expected return for an individual stock. For estimation of portfolio ...

  11. FinanceProfessor.com

    A dated (from 2004) article, but a good review of how CAPM came about and why Galagedera provides an excellent review of the Capital A...

  12. Don't bury CAPM yet!!

    Even if CAPM were "dead", it would be well worth studying it as it laid the foundation for other asset pricing models by succinctly showi...

    1 min read
  13. The Progeny of CAPM

    This paper reviews the recent literature on CAPM and APT, and reaches a surprising conclusion. While APT died a silent death, CAPM's prog...

  14. Is Beta Still Useful Over A Longer-Horizon? An Implied Cost of Capital Approach by Shi and XU

    I was lucky enough to be at this session in Nashville and was blown away by the presentation. Short version: While CAPM may not wor...

  15. My conclusions

    CAPM is a good model. It helps us to understand that systematic risk matters and that asset specific risk SHOULD NOT matter. Fama-French ...

    1 min read

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