Weaknesses of the capital asset pricing model
Andrei Stanculescu
Theoretical and Applied Economics, 2016, vol. XXIII, issue Special(I), 201-204
Abstract:
This paper brings a synthetic summary of the most relevant parts of the capital asset pricing model, cites a few studies that support its topic and argues for the inherent weaknesses of CAPM. The conclusion is drastic: the model does not work, as it is not supported by empirical research, but the root of the weaknesses can be identified in its faulty assumptions.
Keywords: risky assets; risk-free rate; CAPM model; systematic risk; mergers. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://store.ectap.ro/suplimente/International_Fin ... ce_FIBA_2016_XIV.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxiii:y:2016:i:special(i):p:201-204
Access Statistics for this article
Theoretical and Applied Economics is currently edited by Mircea Dinu
More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu (economia.ta@edeconomica.com).