Harvard Business Review

JUNE 18, 2015

We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for. Our research shows that private equity investors don’t seem to rely on the financial tools taught at business schools. How PE firms decide to invest.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

JANUARY 15, 2014

Is market performance predictable for a specific product or class of products? respectively, suggesting that market risk is the major driver of our inability to predict. Look at the variance of your new-market products. 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

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. You’d have this beta with the market, so you have the riskless rate plus beta times the equity premium. That’s kind of a deep insight.

CAPM 8

CAPM Discount Price Finance 8