麻省理工投资学讲义(MIT)_Leture _ Appliatins an Tests.pdfVIP

15.433 INVESTMENTS Class 7: The CAPM and APT Part 2: Applications and Tests Spring 2003 Predictions and Applications • Predictions: – CAPM: In market equilibrium, investors are only rewarded for bearing the market risk. – APT: In the absence of arbitrage, investors are only rewarded for bearing the factor risk. • Applications: – professional portfolio managers: evaluating security returns and fund performance. – regulatory commissions: cost of capital for regulated firms