Abstract
We demonstrate that in a CAPM economy Homogeneity, Walras' Law, and the Tobin Separation Property characterize market demand on finite sets of prices. Consequently, for any numbernthere exist CAPM economies which have at leastnequilibria and hence havendifferent beta pricing formulas. Endowment perturbations in these economies cannot decrease the number of equilibria belown.Journal of Economic LiteratureClassification Numbers: C62; D51; D52; G12.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
