Detail CAPM for estimating the cost of equity capital: Interpreting the empirical evidence (Journal of Financial Economics 103) Bibliografi Author: Da, Zhi ; Re-Jin Guo ; Jagannathan, Ravi Topik: CAPM; Asset pricinganomalies; Cost of capital; Beta; Capital budgeting Bahasa: (EN )     Tahun Terbit: 2012     Jenis: Article - diterbitkan di jurnal ilmiah internasional Fulltext: CAPM for estimating.pdf (721.14KB; 2 download) Abstract We argue that the empirical evidence against the capital asset pricing model (CAPM) based on stock returns docs not invalidate its use for estimating the cost of capital for projects in making capital budgeting decisions. Because stocks are backed not only by projects in place, but also by the options to modify current projects and undertake new ones, chc expected returns on stocks need not satisfy the CAPM even when expected returns of projects do. We provide empirical support for our argumenrs by developing a method for estimating firms' project CAPM betas and project returns. Our findings justify the continued use of the CAPM by firms in spite of the mounting evidence against it based on the cross section of stock returns. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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