This paper concentrates on valuation of interest rate. Changes in the short rate captured in a stochastic model which generates a term structure of interest rates. Leading interest rate models are Vasicek model, Cox, Ingersoll & Ross model and Heath, Jarrow and Morton model. First two model are...

The results of empirical tests of the capital asset pricing model (CAPM) are discussed in this paper. A formidable problem here involves setting up an effective method for testing or test methodology. Many conceptual and statistical problems are inherent in tests of capital asset pricing model....

The present paper analyses the portfolios composed from the shares of some Lithuanian firms. The methods applied to compose and examine the portfolios were those used in foreign countries: the Makowitz model, the Sharpe model, and the randomly composed portfolio. The latter model is the one in...