for a risky asset in a laboratory experiment. We find that thinking-by-analogy has a strong influence when the assets in …

each of the asset markets, were sufficient to cause this effect. In the second part of experiment, post hoc assessment of … risk aversion was implemented in a sample of former participants of the asset market experiment (32 persons). The presented …

This paper deals with the CAPM-derived capital budgeting criterion, and in particular with Rubinstein’s (1973 …) an example showing that CAPM-minded evaluators may incur arbitrage losses. …

The purpose of this study is to examine the validity of the CAPM in the capital markets of the Pakistan. The study used … are used to test the validity of CAPM. The findings of the study are not in support of CAPM. The critical conditions of … the CAPM that the intercept term is equal to zero, there is a positive relation between the risk and return, and market …

This paper shows that (i) project valuation via disequilibrium NPV+CAPM contradicts valuation via arbitrage pricing …, (ii) standard CAPM-minded decision makers may fail to profit from arbitrage opportunities, (iii) standard CAPM …-based valuation violates value additivity. As a consequence, the standard use of CAPM for project valuation and decision making should …

This paper uses counterexamples and simple formalization to show that the standard CAPM-based Net Present Value may not … be used for investment valuations. The reason is that the standard CAPM-based capital budgeting criterion implies a … descriptions of the same problem lead to different choices. As a result, the CAPM-based NPV as a tool for valuing projects and …

The Capital Asset Pricing Model (CAPM) has dominated finance theory for over thirty years; it suggests that the market … described solely by the one-factor CAPM. Therefore, the idea is to add other factors in order to complete the beta in explaining … successor to the CAPM without being a real success. Later, researchers support that average stock returns are related to some …