Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

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Investigation of Asset Pricing Model on Stock Market

Authors
Jiayin Li1, Ruiting Yi2, *
1CIB, Fort Hays University, 600 Park St, Hays, KS 67601, USA
2Van Mildert College, Durham University, Durham, DH1 3LH, UK
*Corresponding author. Email: lzcj73@durham.ac.uk
Corresponding Author
Ruiting Yi
Available Online 27 December 2022.
DOI
10.2991/978-94-6463-052-7_117How to use a DOI?
Keywords
Factor model; asset pricing; stock market
Abstract

And after 1980, static asset pricing models were not very stable. There are also a number of factors that make the capital-asset pricing models used less useful. Inflation, rising interest rates, and Russia’s war in Ukraine are all clear factors for stock market falls. These elements are intertwined and appear to exacerbate each other. Investors were coping with the effects of increased interest rates earlier this year, which were needed to help with growing inflation but damaged the returns of highly valued bonds and leading corporations in the stock market. This article summarizes much literature about asset pricing to present the development of the factor model and Markowitz model. The theory and assumptions of Markowitz’s market model and the factor model are thoroughly examined in this article. The paper finds that the CAPM model then has a considerable impact on value evaluation and risk management, with its primary purpose being to establish the relationship between capital risk and return.

Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
27 December 2022
ISBN
978-94-6463-052-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-052-7_117How to use a DOI?
Copyright
© 2022 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jiayin Li
AU  - Ruiting Yi
PY  - 2022
DA  - 2022/12/27
TI  - Investigation of Asset Pricing Model on Stock Market
BT  - Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)
PB  - Atlantis Press
SP  - 1045
EP  - 1051
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-052-7_117
DO  - 10.2991/978-94-6463-052-7_117
ID  - Li2022
ER  -