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Bob''s blog entries CAPM model David l. Here is a brief excerpt from an article by David l. Pierce for the Wall Street Journal. You may have a college senior in your family or know one or more elsewhere. If so, I hope you will share it. To read the complete article, check out other resources, and obtain WSJ subscription information, please […].

Advice 100

Complimentary Resource – Change Is Constant: PMBOK Guide 5th Edition

Strategy Driven

Anyone contemplating pursuit of their PMP or CAPM certification within the next 12 months needs to know that both the PMP and CAPM examinations will change from dependence on the PMBOK Guide® Fourth Edition to focus on the PMBOK Guide® Fifth Edition on July 31, 2013.


Still Many Ways to Skin a Capital Cost

Harvard Business Review

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. ".


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

Harvard Business Review

In estimating the cost of equity, nearly nine out of ten organizations use the capital asset pricing model (CAPM), which calculates the cost of equity using a risk-free rate, beta factor, and a market risk premium, each of which introduces significant variability. Budgeting Finance Strategic planning CAPMWith 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?

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital. The private equity industry has grown markedly in the last 20 years and we know more than we used to about its effects on the economy.