Still Many Ways to Skin a Capital Cost
Harvard Business Review
MARCH 10, 2011
knew that firms were making heavy use of the capital asset pricing model (CAPM) to size up growth opportunities, but that the model was only as good as its inputs. But that article was written a decade ago, and still the CAPM rules — and as for how to come up with the crucial inputs to it, well, practice remains all over the map. Not at all, he said, because it's "no secret that applying the CAPM is as much an art as financial science." The same is true for the CAPM. ".