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.

CAPM 14

CAPM Cost Discounted Cash Flow Cost of Capital 14

Harvard Business Review

JANUARY 15, 2014

First recognize if the product is solving a real problem and people will buy it, then figure out how to scale production and distribution in situations of success. Though there are multiple types of prediction, the gold standard is the prediction of precise outcomes.

Black-Scholes 8

Black-Scholes Productivity Products CAPM 8

Harvard Business Review

APRIL 2, 2014

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. But it is a very basic rewrite of how to think about finance, and it has swept all before it in the academic world. And the theory that was available then was CAPM. But everybody still uses the method that came out of CAPM.

CAPM 8

CAPM Discount Price Finance 8