This paper examines the power of the cross-sectional and multivariate tests of the CAPM under ideal conditions. When the CAPM is true the positively weighted market portfolio is MV-efficient and securities plot on the security market line. When the CAPM is false an alternative asset pricing...

Grouping does not produce a wide range of betas. Consequently, cross-sectional tests of the CAPM are bound to lack power. This paper provides a simple way to alleviate the problem by repackaging the data with zero-weight portfolios. When the CAPM is true and the data are repackaged, simulation...

Abstract Currently, management devolution and engagement of local stakeholders - expected to have better information - is seen as key to effective environmental management. Often, the absence of clear property rights and/or supporting market institutions leaves management decisions to a...

Marine protected areas (MPAs) can positively impact upon marine biodiversity and fisheries returns. Increased fish densities inside MPAs can positively affect catches outside these areas. We examine MPA placement in a transboundary fishery when nations are, and are not, cooperative. We apply a...

Asset pricing lies at the heart of financial economics, being not only the foundation of every other field in this subject area but also having prime relevance for practical decision-making. For this two-volume collection the editor has selected some of the most influential articles which have...

In this paper, I set up scenarios where the mean-variance capital asset pricing model is true and where it is false. Then I investigate whether the coefficients from regressions of population expected excess returns on population betas, and expected excess returns on betas and size, allow us to...