The Dichotomous Asset Pricing Model

Essay specific features

 

Issue:

Business

 

Written by:

Robert M

 

Date added:

July 21, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1618

 

Was viewed:

656 times

 

Rating of current essay:

 
Essay content:

The model manages to combine mean-variance (MV) and the gain-loss (GL) approaches to portfolio selection and asset pricing by proving that a benchmark portfolio is MV and GL efficient if and only if a dichotomous asset pricing model holds. More precisely, the DAPM holds if for all assets i the following predictions are satisfied, in relation to a benchmark portfolio m: The model was so far tested and compared to the CAPM and best-beta CAPM (BCAPM) on the Fama-French 100 portfolios sorted on size and value, with significant insights...
displayed 300 characters

Custom written essay

All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page

Order custom paper

Full essays database

You get access to all the essays and can view as many of them as you like for as little as $28.95/month

Buy database access

Order custom writing paper now!

  • Your research paper is written
    by certified writers
  • Your requirements and targets are
    always met
  • You are able to control the progress
    of your writing assignment
  • You get a chance to become an
    excellent student!

Get a price guote

 
 

More precisely, the DAPM holds if for all assets i the following predictions are satisfied, in relation to a benchmark portfolio m: The model was so far tested and compared to the CAPM and best-beta CAPM (BCAPM) on the Fama-French 100 portfolios sorted on size and value, with significant insights. The aim of this paper is to repeat the analysis and test the predictive power of the DAPM for a European market, more precisely to answer the following question: Does DAPM hold for the UK stock market? UK market was chosen because of its size and trading volumes, but also because it bears most resemblances to the US one...
displayed 300 characters

General issues of this essay:

Related essays:

x
Services