"Abnormal returns" is an important concept in academic finance, as well as in the investment management industry.Let's go over how to calculate an abnormal return for a stock using stock prices and ...

When investing, it can be jarring to expect one thing, and for something completely different to happen. Specifically, when your investment shows an abnormal return. What is an abnormal return? As the ...

The cumulative abnormal return (CAR) is a key metric used by investors and financial analysts to evaluate the actual performance of a stock or portfolio relative to what is expected. CAR measures the ...

Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other asset within the context of its intrinsic risk. Used primarily to analyze ...

What Is the Capital Asset Pricing Model? Corporate accountants and financial analysts often use the capital asset pricing model (CAPM) in capital budgeting to estimate the cost of shareholder equity.

In the 1960s, Jack Treynor, William F. Sharpe, John Lintner, and Jan Mossin developed the capital asset pricing model (CAPM) to determine the theoretical appropriate rate that an asset should return ...

A group of our advisors attended a conference this past fall sponsored by Dimensional Fund Advisors. In his talk, “Risk Dimensions of the Market,” Eugene F. Fama reviewed the latest data on the ...

Tinic and West (1984) argue that a tradeoff between risk and return exists only in January. This study demonstrates that it is not just the January Effect on stock returns which is related to the ...

This section offers a unified perspective of modern valuation methods in the context of three important asset classes – fixed income, stocks, and derivatives. The course will then proceed to ...