A look at the quality of CAPM

Empirical Finance Blog has a post called “How to use the Fama French Model”.

I find  the first part of the post most interesting.  This shows some examples of how the Capital Asset Pricing Model falls down.  I’ve trashed CAPM before in the form of “4 and a half myths about beta in finance”.

The posts on low volatility investing also exhibit weaknesses of CAPM.

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