Organization with limited resources are more willing to use a cost of equity capital, which is decided by "what investors identify to us that they need executives with MBA's are commonly practice only one factor capital
asset pricing model or the CAMP with additional risk factor than that of non MBA executives, but the distinction is only important for the one factor capital
asset pricing model CAPM".13
The second section is made up of the literature that deals with the
asset pricing model and some works are mentioned that used this model.
The Capital
Asset Pricing Model (CAPM) of SLB (Sharpe, 1964; Lintner, 1975; Black, 1972), has formed a method for researchers and experts to have a look at risks and returns.
We find that cost of equity estimates produced by the leading
asset pricing models, the Sharpe (1964) and Lintner (1965) Capital
Asset Pricing Model (CAPM), and the Fama and French (1993) Three-Factor Model (FF3M) are very sensitive to the composition of the market portfolio.
From the findings on this additional factor, so called momentum, Carhart (1997) develops a deeper analysis of this effect on empirical predictions, so to propose its inclusion as a fourth factor on the Fama and French (1993, 1996) 3-factor model, yielding the well-known 4-factor
asset pricing model. It has been widely applied in several studies, especially on the investigation of additional variables affecting asset prices, and on the assessment of most powerful versions of the model.
It also compared the risk-adjusted performance of funds with different analyst ratings to the average capital
asset pricing model (CAPM) alpha.
They include wiping out the obvious corruption in our stock exchanges and corporations to promote Capital
Asset Pricing Model investments, setting ablaze any and all rent-seeking subsidies (which would be most of them), and dismantling state-owned corporations.
More precisely, we adapt the liquidity-adjusted capital
asset pricing model (CAPM) proposed by Acharya and Pedersen (2005) for the Portuguese case and suggest two alternative specifications of a liquidity-adjusted CAPM, to separate and compare the effects of liquidity and liquidity risk in asset pricing.
Theoretical underwriting profits and losses can be determined by the Capital
Asset Pricing Model. The model developed by Biger and Kahane (1978) indicates that property and casualty insurers are subject to underwriting losses, assuming the underwriting beta is zero.
This reconciliation is generally established through
asset pricing models, like Capital
Asset Pricing Model (CAPM) of Sharpe (1964), Linter (1965) and Mossin (1966), Three Factor Model (FF3) of Fama and French (1993) and Four Factor Model (FF4) of (Carhart, 1997).
On the other hand, experts are still looking for an adequate and easy to use
asset pricing model for emerging countries due to their specificities.
