CAPM-based company (mis)valuations
There is a discrepancy between CAPM-implied and realized returns. Using the CAPM in capital budgeting -- as recommended in textbooks -- should thus have real effects. For instance, low beta projects should be valued more by CAPM-users than by the market. We test this hypothesis using M&A data an...
Saved in:
Main Authors: | , , , |
---|---|
Format: | text |
Language: | English |
Published: |
Institutional Knowledge at Singapore Management University
2021
|
Subjects: | |
Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/6566 https://ink.library.smu.edu.sg/context/lkcsb_research/article/7565/viewcontent/CAPM_based_Co_MisValuation_sv.pdf |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Singapore Management University |
Language: | English |