Abstract
Nowadays, quantitative finance has become a more and more mainstream research direction, and the origin model of quantitative finance is the capital asset pricing model (CAPM)created by William Sharp and others. This paper mainly studies the feasibility of CAPM model for the American market, in order to prove the universality and accuracy of CAPM model, and analyzes the relevant errors. The research object of this paper is 59 randomly selected listed companies in 11 industries in S&P500 index, and the regression is carried out by the ordinary least square method, and the goodness of fit is obtained, so as to prove its universality. The data comes from Yahoo Finance. Through data analysis, this paper believes that CAPM model is universal, but it has low adaptability for some special industries, so it is necessary to introduce more variable factors or carry out non-linear regression to improve the accuracy of its prediction.
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