Using a CCAPM based risk adjustment model, consistent with general asset pricing theory, I perform corporate valuations of a large sample of stocks listed on NYSE, AMEX and NASDAQ. The model is different from the standard CAPM model in the sense that it discounts forecasted residual income for...

El artículo evidencia los supuestos y problemas que implica la utilización del Capital Assets Pricing Model- CAPM en el cálculo del costo del capital propio de las empresas - Equity, haciendo énfasis en la diferencia que existe entre la forma como toman sus decisiones de inversión quienes...

This paper analyzes the Risk Appetite Index (RAI), a measure of investors� risk aversion proposed by Kumar and Persaud (2001, 2002). We show that the RAI distinguishes between risk and risk aversion only under theoretically restrictive assumptions on the distribution of returns and the...