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Invaluable advice for job-hunting college seniors

First Friday Book Synopsis

Bob''s blog entries CAPM model David l. 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 […].

CAPM 75
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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.

PMBOK 50
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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.

CAPM 14
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What the Great Fama-Shiller Debate Has Taught Us

Harvard Business Review

Early tests of CAPM came out reasonably well, and by the end of the 1970s Fama’s former student Michael Jensen was (in)famously declaring that “I believe there is no other proposition in economics which has more solid empirical evidence supporting it than the Efficient Market Hypothesis.”.

CAPM 8
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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. Instead, PE investors typically target a 22% internal rate of return on their investments on average (with the vast majority of target rates of return between 20 and 25%), a return that appears to be above a CAPM-based rate.

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Stop Trying to Predict Which New Products Will Succeed

Harvard Business Review

Though there are multiple types of prediction, the gold standard is the prediction of precise outcomes.

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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. But everybody still uses the method that came out of CAPM.

CAPM 8