The study adds an empirical outlook on the predicting power of using data from the future to predict future returns. The crux of the traditional Capital Asset Pricing Model (CAPM) methodology is using historical data in the calculation of the beta coefficient. This study instead uses a battery...

This study presents a new method for calculating beta through a back-solving process, which assumes the Capital Asset Pricing Model (CAPM) to be absolute. This process has improved asset pricing abilities and allows for the discovery of the “one-true” market returns. The market portfolio...