 An Empirical Test of CAPM: Application in Apple and Tesla StocksZihan Chen ()
A chapter in Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022), 2023, pp 316-322 from Springer Abstract: Abstract It is crucial for investors to select the investment portfolio in the market. Risk and return are long-standing paradoxes for investors, and the higher risk may indicate a higher return than other portfolios. This article uses the stock price of Apple stock and Tesla stock from 2017 to 2022 as a sample, the CAPM model was applied to conduct regression analysis on the overall return and individual stock return of the securities market, where the return influenced by the beta coefficient. Comparing the beta coefficient in Apple stock and Tesla stock, a higher beta was regressed in Apple stock, which means that some risk-averse will choose to buy some Tesla stock into their investment portfolio. However, after analysing the output and examining the regression model, CAPM may fail to be applied in Tesla stock. Keywords: CAPM; Beta coefficient; Investment preference; Regression analysis (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-054-1_36 Ordering information: This item can be ordered from DOI: 10.2991/978-94-6463-054-1_36 Access Statistics for this chapter More chapters in Advances in Economics, Business and Management Research from Springer |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.