CAPM-based company (mis)valuations

CAPM-based company (mis)valuations

There is a discrepancy between CAPM-implied and realized returns. Using the CAPM in capital budgeting -- as recommended in finance textbooks -- should thus have valuation effects. For instance, low beta projects should be valued more by CAPM-using managers than by the market. This paper empirically...

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Bibliographic Details
Main Authors: DESSAINT, Olivier, OLIVIER, Jacques, OTTO, Clemens A., THESMAR, David
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2018
Subjects:
Capital Budgeting
Valuation
Mergers and Acquisitions
Capital Asset Pricing Model
Corporate Finance
Finance and Financial Management
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/5925
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6924/viewcontent/SSRN_id3050928.pdf
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Institution: Singapore Management University
Language: English

Internet

https://ink.library.smu.edu.sg/lkcsb_research/5925
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6924/viewcontent/SSRN_id3050928.pdf

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