The Capital Asset Pricing Model (CAPM) is one of the most widespread asset pricing models in the financial world, but did you know that its results are not so reliable? According to Professor Pablo Fernández and researcher José Maria Carabias, both of IESE, it is possible to obtain an “Ã la carte” Beta coefficient. Should we thus blindly entrust the results of our investments to this method? The article “El peligro de utilizar Betas calculadas” (“The Danger of Using Estimated Beta Coefficients”) calls into question the all-powerful CAPM, or at least the systematic nature by which many apply it.
Like this content? Why not share it?
There Are No Comments
Click to Add the First »
Click to Add the First »