Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 71 , 18 January 2024
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The Application of the Capital Asset Pricing Model (CAPM) in the Field of Asset Management
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Abstract
The Capital Asset Pricing Model (CAPM) has been a cornerstone of modern finance theory since its introduction by William Sharpe in the 1960s. This research article explores the application of the CAPM in the field of asset management. Besides, the CAPM provides a framework for understanding the relationship between risk and return, aiding asset managers in making informed investment decisions. This article discusses the key components of the CAPM, its limitations, and its practical implications in portfolio construction, risk assessment, and performance evaluation. Through an analysis of empirical studies, it becomes evident that while the CAPM serves as a valuable tool in asset management, its assumptions and constraints must be carefully considered. As the financial landscape continues to evolve, the CAPM remains relevant in guiding asset management strategies.
Keywords
Empirical studies, Economic turmoil, Asset, Management, Limitations
References
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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)
- 978-1-83558-281-7
- ISBN (Online)
- 978-1-83558-282-4
- Published Date
- 18 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/71/20241459
- Copyright
- 18 January 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