Capital Market Theory and Efficient Markets

Richard O. Michaud ()
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Richard O. Michaud: New Frontier Advisors

Chapter Chapter 2 in Finance's Wrong Turns, 2023, pp 9-16 from Springer

Abstract: Abstract MarkowitzMarkowitz, H. (1959) represented an explosion of ideas and a well-founded set of proposals for a theory of finance and a scientific approach to asset management. But finance took a sharp turn from the path that MarkowitzMarkowitz, H. had outlined. There were two dominant new ideas—the Capital Asset Pricing ModelCapital Asset Pricing Model (CAPM) (CAPM) and efficient marketsEfficient market. Both emerged post-1960 and would characterize finance theory and supply the tools for investment management in the remainder of the twentieth century and beyond.

Keywords: CAPM; Efficient markets; Hypothesis; Sharpe; Utility; Workbench (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-21863-7_2

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DOI: 10.1007/978-3-031-21863-7_2

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