A Literature Review on the Capital Asset Pricing Model in Finance

Houyu Zou

doi:10.54254/2754-1169/26/20230543

Research Article

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Published on 13 September 2023

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Zou,H. (2023). A Literature Review on the Capital Asset Pricing Model in Finance. Advances in Economics, Management and Political Sciences,26,56-60.

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A Literature Review on the Capital Asset Pricing Model in Finance

Houyu Zou *^,1,

¹ Beijing Normal University - Hong Kong Baptist University Joint International College

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/26/20230543

Abstract

CAPM (Capital Asset Pricing Model) plays an extremely important role in the financial sector. However, since the establishment of the model, the discussion and dispute about it have never stopped. It predicts future data through past market data. However, with the deepening of research, people find that the stock returns in the capital market do not conform to CAPM. The results obtained by the capital asset pricing model may be due to the lack of data validity in the market, which leads to its own inability to carry out relevant tests. In different regions, scholars in some regions have also conducted relevant research on the local capital market. They think that CAPM does not conform to their current regional situation.

Keywords

Capital Asset Pricing Model, finance, market risk on expected returns

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References

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Cite this article

Zou,H. (2023). A Literature Review on the Capital Asset Pricing Model in Finance. Advances in Economics, Management and Political Sciences,26,56-60.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

Conference website: https://2023.icmred.org/

ISBN：978-1-915371-95-9(Print) / 978-1-915371-96-6(Online)

Conference date: 28 April 2023

Editor：Javier Cifuentes-Faura, Canh Thien Dang

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.26

ISSN：2754-1169(Print) / 2754-1177(Online)

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