Advances in Economics, Management and Political Sciences
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Advances in Economics, Management and Political Sciences
Series Vol. 78 , 18 April 2024
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Analysis of Capital Asset Pricing Model in Chinese Stock Market
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Abstract
The Capital Asset Pricing Model (CAPM) is a key financial tool used to estimate the relationship between asset return and risk, helping investors make investment decisions, business valuation and risk management. The importance of CAPM is reflected in its ability to help investors understand market risk, build an optimized portfolio, estimate the cost of capital, evaluate investment performance, and test market efficiency. However, it is important to keep in mind that CAPM has its assumptions and limitations, and other factors should be considered in making decisions. This paper mainly studies the application and future development of capital asset pricing model in Chinese stock market through a literature review analysis. The conclusion of this paper is that the capital asset pricing model is widely used in China's stock market, which has a profound impact on the development of China's stock market, and many different types of models have been derived to deal with the risks that may appear in different fields.
Keywords
CAPM, Chinese stock market, market risk
References
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2. Yang Xiangjun, Yang Shanchao. Application and Verification of the Capital Asset Pricing Model in the Shanghai Stock Market of China: Based on Industry Grouping Method[J]. Journal of Guangxi Normal University (Natural Science Edition), 2017, 35(04): 49-57. DOI: 10.16088/j.issn.1001-6600.2017.04.007
3. Wang Xinyu. An Applicability Study of Asset Pricing Models Incorporating Human Capital in China [D]. Central University of Finance and Economics, 2018.
4. Zhang Lishuang. Empirical Study on the Components of China's SSE 50 Index: Based on the CAPM Model and Fama-French Three-Factor Model[J]. Economic Research Guide, 2022, (26): 78-80.
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-379-1
- ISBN (Online)
- 978-1-83558-380-7
- Published Date
- 18 April 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/78/20241849
- Copyright
- 18 April 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited