CAPM is not multifactor model. That’s what I said.
Everybody still use crude oil. That doesn’t mean is the best source of energy.
Flashback, apolgies for the confusion on my post. Portion of it was addressing to krokodilizm who said that he would throw glass cup at an analyst who talks about CAPM…lol i don’t even know what that means…I mean maybe his analysts use some magic potion haha
Usury
All of classical economics (“rational” actors) has been disproven by behavioral economics but no applications have risen to replace. Same with most of the finance and economic theories and analysis. This may change in next few years as big data realizes the promise.
Doing analysis on past financials and pricing data easy and better than nothing but not the answer. Using massive data sets to capture behaviors as well as financial data in combination with machine learning algorithms begins to approach useful analysis.
Well then. I was at a recent presentation where they used something else, and it was pretty ****ed compelling. I would want to ask their permission before mentioning it here. However, I can say that it sure looks like it will be in the CFA curriculum in 10 years.
If you have spare time, it sounds like a copy of Animal Spirits From Akerloff and Schiller is for you.
what presentation was it? I 'd have to assume sell side because it cannot be from buy side. Buy side would never disclose the methodology even to clients or prospective clients. It surely cannot be internal corp dev team…Or it could be from your own analysts at buy side and you are some CIO or PM…Which one was it? I am really curious about this compelling method for equity risk premium.
that the cfa word is an adjective. lol. so much easier as a noun