Explain the concepts of the size and value premium as CAPM anomalies. How would investors identify these

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Explain the concepts of the size and value premium as CAPM anomalies. How would investors identify these as ‘alphas’ in terms of CAPM and implement trading strategies to earn each premium?

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A Survey of Mathematics with Applications

ISBN: 978-0134112107

10th edition

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

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Posted Date: Jan 09, 2021 01:19 AM

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Explain the concepts of the size and value premium as CAPM anomalies. How would investors identify these

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The size premium is the excess return that is earned by investing in small cap stocks relative to large cap stocks The value premium is the excess ret... View the full answer

A Survey of Mathematics with Applications

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