Remove Hammer Remove Pricing Theory Remove Short-term Remove Technology
article thumbnail

Why Those Guys Won the Economics Nobels

Harvard Business Review

So do not be discouraged to learn that we start with something called the stochastic discount factor , which Campbell describes as the central idea of modern asset-pricing theory. And in those early tests, it seemed like market prices mostly obeyed both CAPM and the efficient market hypothesis. So that’s problem No. Problem No.

CAPM 8