Modern investment theory takes it for granted that a Security Market Line (SML) is as certain as its "corresponding" Capital Market Line. (CML). However, it can be easily demonstrated that this is not the case. Knightian non-probabilistic, information gap uncertainty exists in the security...

This paper examines the applicability of CAPM in explaining the risk-return relation in the Malaysian stock market for the period of January 1995 to December 2006. The test, using linear regression method, was carried out on four models: the standard CAPM model with constant beta (Model I), the...

In many research studies it is argued that it is possible to extract useful information about future economic growth from the performance of financial markets. However, this study goes further and shows that it is not only possible to use expectations derived from financial markets to forecast...

From a statistical point of view, the prevalence of non-Gaussian distributions in nancial returns and their volatilities shows that the Central Limit Theorem (CLT) often does not apply in nancial markets. In this paper we take the position that the independence assumption of the CLT is violated...

In this paper, using an IS-LM model with reserve market, we examine weather the operating procedure actually adopted by many central banks in the world, i.e. targeting directly short run interest rates and hence indirectly market interest rates, is more efficient in stabilizing output than a...

This study aims to analyze whether the observed growth in Cameroon between 2001 and 2007 was pro-poor or not. The main data sources used to complete this study are those of ECAM II, ECAM III and World Bank data. Among the tools used to analyze the nature of growth observed, are the FGT indices,...