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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| Main Authors: | , , , |
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| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2018
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| Subjects: | |
| 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 |