The capital asset pricing model (CAPM), favored by financial researchers and practitioners fifteen years ago, holds that the extra return on a risky asset comes from bearing market risk only. But newer evidence supports the intertemporal CAPM (I-CAPM) theory (Merton 1973), which suggests that...

An examination of the investment and consumption characteristics of the paintings market between 1971 and 1984, using the capital asset pricing model.