Empirical Research based on the Asset Pricing Model in China's Securities Market under the COVID-19 Epidemic

Abstract

This paper explores the empirical research based on the asset pricing model in China's securities market under the COVID-19 epidemic. Capital asset pricing model, which are frequently employed in corporate finance and investment decision-making, serve as the foundation for price theory in financial markets. However, the research on asset pricing models in China is still in its infancy, and there is a lack of detailed and profound empirical studies. The COVID-19 epidemic causes some economic damage to China's securities market. Therefore, the empirical research in the era of the epidemic is necessary, and it can help investors find suitable investment portfolios. Using asset pricing models and related indicator formulas, the results of the study show that the risk of bond fonds, blend funds, and stock funds, in addition to monetary funds, increases with the arrival of COVID-19. Among them, blend funds and stock funds have better performances, but the operational risk of these three types of funds outweighs the return.