Abstract

The rapid development of the economy has brought about the continuous accumulation of personal assets, and at the same time, the concept of financial management is rapidly budding and spreading. People's rapidly expanding consumer desire makes stocks, funds, and other products more appealing, leading them to prefer the financial route. However, stocks and funds need investors to bear certain risks, generally speaking, the greater the risk, the more lucrative the investment returns. The CAPM model was born for this reason, and its main content is the relationship between yield and risk and equilibrium pricing. The application of the CAPM model in the stock market has always been the focus of attention. As a core part of the stock market, the banking sector has an inseparable relationship with finance. Therefore, this paper selects eight stocks of banks with long listed times and top market capitalization rankings, conducts empirical analysis on their trading data from 2018 to 2021, and employs the time series detection method to test whether the single factor CAPM model is effective in the Chinese stock market.

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