The Capital Asset Pricing Model: An Evaluation of its Potential as a Strategic Planning Tool

Thomas H. Naylor and Francis Tapon
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Thomas H. Naylor: Duke University

Management Science, 1982, vol. 28, issue 10, 1166-1173

Abstract: In this paper we provide a summary of the capital asset pricing model (CAPM) and point out how it might possibly be used as a tool for strategic planning by corporations that own a portfolio of businesses. We also point out some of the assumptions underlying the CAPM which must be satisfied if it is to be used for strategic planning. Next we include a critical appraisal of the CAPM as a strategic planning tool. Finally, we state the case for linking competitive strategy models, CAPM models, and business simulation models.

Keywords: corporate; planning (search for similar items in EconPapers)
Date: 1982
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:28:y:1982:i:10:p:1166-1173

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