Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

<Previous Article In Volume
Next Article In Volume>

Comparison of CAPM and APT

Authors
Zixin Wang1, *
1School of Economics, The University of Edinburgh, Edinburgh, EH8 9JT, United Kingdom
*Corresponding author. Email: s2526205@ed.ac.uk
Corresponding Author
Zixin Wang
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_35How to use a DOI?
Keywords
Capital Assets Pricing Model (CAPM); Arbitrage Pricing Theory (APT); Compare Analysis; Literature Review
Abstract

The literature comparing Capital Assets Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) is gradually increasing as more and more scholars are paying attention to CAPM and APT to illustrate the relationship between return and risk. However, there are few literature reviews in this area. This study aims to review these articles from both national and industry perspectives. The author conducted a literature search through websites such as Web of Science, Google Scholar, and selected 18 articles. In this study, the comparison between the two models is specified into five aspects: aspects compared between APT and CAPM, the method used in comparing, and so on. Based on this logic, the literature is analyzed and compared. Eventually, through this literature review, it is found that the countries and industries selected for the comparison between CAPM and APT were relatively single. This study provides solutions to these problems and suggestions for future research directions.

Copyright
© 2025 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.

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_35How to use a DOI?
Copyright
© 2025 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  - Zixin Wang
PY  - 2025
DA  - 2025/02/24
TI  - Comparison of CAPM and APT
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 345
EP  - 353
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_35
DO  - 10.2991/978-94-6463-652-9_35
ID  - Wang2025
ER  -