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by lwb120
March 9th, 2005, 7:57 am
Forum: General Forum
Topic: CAPM question
Replies: 8
Views: 158772

CAPM question

if rm is negative, then ri is negative, why not turn to invest risk free maket? in this case, is CAPM still valid?
by lwb120
March 9th, 2005, 7:34 am
Forum: General Forum
Topic: CAPM question
Replies: 8
Views: 158772

CAPM question

CAPM: ri=rf+b(rm-rf)in general, we are given the return on S&P 500 index, say 12%, as rm in the fomula, but how can we work out this number? if we use the S&P data on yahoo finance, and then calculate return through r=ln[p(t)/p(t-1)], the return shall be negative sometimes.
by lwb120
March 9th, 2005, 7:22 am
Forum: Student Forum
Topic: About CAPM
Replies: 1
Views: 156556

About CAPM

CAPM: ri=rf+b(rm-rf)in general, we are given the return on S&P 500 index, say 12%, as rm in the fomula, but how can we work out this number? if we use the S&P data on yahoo finance, and then calculate return through r=ln[p(t)/p(t-1)], the return shall be negative sometimes.
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