Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)

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Research on the Application of CAPM Model in Investment

Taking Amazon and Costco as Examples

Authors
Yuchen Gao1, *
1State University of New York at Stony Brook, Stony Brook, NY, 11794, USA
*Corresponding author. Email: 552139589@qq.com
Corresponding Author
Yuchen Gao
Available Online 15 May 2023.
DOI
10.2991/978-94-6463-142-5_15How to use a DOI?
Keywords
β Coefficient; capital asset pricing model; investment preference; risk; Amazon; Costco
Abstract

Capital Asset Pricing Model (CAPM) is one of the most important theories in modern finance. As a simple, intuitive risk premium model, The CAPM was primarily developed to study the relationship between expected returns on assets and risk assets in the securities market. Scholars have conducted a lot of empirical research on the applicability of this model in the capital market. CAPM has been proven to be somewhat defective, but it is still widely accepted and recognized and broadly applied in research. In this paper, two representative individual stocks in the U.S. retail industry, namely Amazon.com, Inc. and Costco Wholesale Corporation, are used as examples and the indices of the two stocks from 2017 to 2021 as samples. CAPM is used to conduct regressive analysis and the level of its risk is judged so as to provide investment suggestions and countermeasures.

Copyright
© 2023 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 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
15 May 2023
ISBN
978-94-6463-142-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-142-5_15How to use a DOI?
Copyright
© 2023 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  - Yuchen Gao
PY  - 2023
DA  - 2023/05/15
TI  - Research on the Application of CAPM Model in Investment
BT  - Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)
PB  - Atlantis Press
SP  - 140
EP  - 146
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-142-5_15
DO  - 10.2991/978-94-6463-142-5_15
ID  - Gao2023
ER  -