Using the Capital Asset Pricing Model and Arbitrage Pricing Theory in Capital Budgeting
Steven D. Young, Samir Saadi
Abstract
Steven D. Young, Samir Saadi
Abstract
This chapter contains sections titled: Introduction The Capital Asset Pricing Model Theoretical Extensions of the Capm Challenges to Using the Capm Biases in Testing for the Validity of the Capm The Arbitrage Pricing Theory Recent Developments: Does Information Asymmetry Matter to the Cost of Equity? Using the Capm and the Apt in Practice Summary and Conclusions Discussion Questions References About the Authors
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This chapter contains sections titled: Introduction The Capital Asset Pricing Model Theoretical Extensions of the Capm Challenges to Using the Capm Biases in Testing for the Validity of the Capm The Arbitrage Pricing Theory Recent Developments: Does Information Asymmetry Matter to the Cost of Equity? Using the Capm and the Apt in Practice Summary and Conclusions Discussion Questions References About the Authors
Key concepts: Capital asset pricing model, Arbitrage pricing theory, Investment theory, Consumption-based capital asset pricing model, Arbitrage, Economics, Financial economics, Cost of capital