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Why Those Guys Won the Economics Nobels

Harvard Business Review

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. And the theory that was available then was CAPM. And in those early tests, it seemed like market prices mostly obeyed both CAPM and the efficient market hypothesis. 2 is this distinction between short-term vs. long-term predictability.

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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

With a record $2 trillion in cash and short-term liquid assets on hand, U.S. non-financial firms certainly seem poised to expand. What's holding them back? There is even greater diversity among organizations in the methods they use when estimating the weighted average cost of capital.