Asset Management Cost of Capital Development Innovation 
Harvard Business Review
OCTOBER 25, 2018
To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)
Harvard Business Review
APRIL 2, 2014
Campbell’s work has also made liberal use of the analytic tools developed by Hansen. Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. It seems like the clearest practical lessons from this academic work have been in asset management.
Expert insights. Personalized for you.
12 
Let's personalize your content