Implications of Fama-French Models and Critical Evaluation of Cost of Equity Approach in Explanation of Variations in Expected Stock Returns

• 作者: Bingjing Gao
• 来源期刊: 财经研究杂志(英文)
• 学科: 医学
• 关键词: CAPM Fama-French Models Cost of equity Portfolio theory Asset pricing
• 年，卷（期）: 2020,（1）
• 页码范围: 63-68
• 页数: 6页
• 分类号: R73

摘要

CAPM theory that solves relationship between asset return and asset risk for potential investment project by CML and SML,is illustrated in the first section as an introduction of further analysis of corporate valuation techniques.Fama and French three factor model is perceived as a revision of CAPM,although it stills has severe weaknesses.CAPM theory solves relationship between asset return and asset risk for potential investment project by CML and SML.