What is the market model? How is it different from the SML for the CAPM?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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Question Posted: Mar 10, 2024 12:00 AM

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The CAPM is one of the most thoroughly researched models in financial economics. When beta is estimated in practice, a variation of CAPM called the market model is often used. To derive the market...
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What is the market model? How is it different from the SML for the CAPM?

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Intermediate Financial Management

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