By means of an amended basic model of financial markets, I reformulate the classical CAPM in two fundamental respects. The first is to have the B-pricing basis extended to include two more market factors; the second is to have the pricing model allow for the hedging relation between ambiguity...

By switching the underlying space for fundamental value from a commodity space to a property space, we build up a preference space characterized by investment felicity, which accommodates traditional as well as newly identified sources of cost and uncertainty in financial markets....

A logical reflection is given on the storage of economic thought of the market economy. Three systems of economics since Adam Smith are identified on the basis of their assumptions of value. The classical system is separated from the others for its production idea of value in contrast to the...

The concept of information is not specified with an information space in the conventional proposition of Efficient Markets Hypothesis (EMH). As a result, due to the ldquo;joint-hypothesis problemrdquo; (Fama, 1991), the EMH is not well-defined and empirically refutable. Nonetheless, the EMH or...