Add Papers Marked0
Paper checked off!

Marked works

Viewed0

Viewed works

Shopping Cart0
Paper added to shopping cart!

Shopping Cart

Register Now

internet library
Atlants.lv library
FAQ

Great deal: today with a discount!

Regular price:
21,48
You save:
4,08 (19%)
Discounted price*:
17,40
Purchase
Add to Wish List
ID number:839312
Author:
Evaluation:
Published: 30.06.2008.
Language: English
Level: College/University
Literature: 20 units
References: Used
Time period viewed: 2005.g. - 2008.g.
Table of contents
Nr. Chapter  Page.
  Introduction    6
1.  Brief overview of Financial Markets    8
1.1.1.1.  Importance of Financial Markets    8
1.1.1.2.  Participants of investment process    9
1.1.1.3.  Risk and Return for Investors (diversification)    10
2.  Capital market theory: essence of 3 basic models    11
2.1.1.1.  Markowitz model    11
2.1.1.2.  Capital Asset Pricing Model – CAPM    14
2.1.1.3.  Introduction    14
2.1.1.4.  Definition    18
2.1.1.5.  Assumptions of the CAPM on stock markets and financial assets    19
2.1.1.6.  Application    22
2.1.1.7.  Implications: strengths of the CAPM    29
2.1.1.8.  Conclusion on the CAPM    31
2.1.1.9.  Arbitrage Pricing Theory - APT    31
2.1.1.10.  Comparison between APT and САРМ    32
3.  Empirical counterparts of models    35
3.1.1.1.  Single-index model - CAPM    35
3.1.1.2.  Multi-index model - APT    38
4.  Criticism and empirical analysis of the CAPM    42
4.1.1.1.  The models—ex-ante expectations and ex-post tests    43
4.1.1.2.  Empirical tests of the CAPM    44
4.1.1.3.  Comparisons of traditional tests of general equilibrium relationships and some new research    49
5.  Baltic Stock Market: Overview    53
6.  CAPM tests on the Baltick Stock Market    68
7.  Conclusions and suggestions    71
8.  Bibliography (Lists of utilised literature and sources)    74
9.  Summary in Latvian    76
Extract

INTRODUCTION

The Capital Market Theory is a widely researched area, and extensively is covered in publications over last 50 years. This theory is a fundamental base for understanding the investment processes in any market, and is concerned with finding the most desirable group of securities to hold, given the properties of each securities. There are 3 basic models of Capital Market Theory which are bases for later extensional models.
Almost everyone owns some kind or group (portfolio) of assets. These assets could likely be a real assets (such as a car, a house etc.) as well as financial assets such as stocks, bonds and so on. An investor is faced with a choice among all these assets, what means that the decision process seems to play an important role. The Capital Market Theory describes the basic principles underlying rational portfolio choice and its impact on assets prices in marketplace.
The Current Master Thesis is aiming at financial assets and markets, analyzing securities markets, specially focusing on stock markets as a whole with main emphases on Baltic stock market. The CAPM was taken as a basic model for investigation in Master Thesis, because it is the first model which has practical implication in real world.
The author has chosen the topic for two reasons mainly: first, because stock markets (in difference to other markets) provide opportunities and data readily available to all (small and big) investors. Secondly, because previously the model has not be tested on the Baltic market but in other markets.
The importance of the study is supported by the fact that the Baltic market is fast growing market and it is supposed to be very attractive to potential investors.

Goal and tasks of Master Thesis:
Aim of this research is to analyze and critically estimate the previous investigations, dedicated to the applicability of CAPM and to verify if CAPM holds also for the Baltic Stock Market.
To achieve the above- stated goal, the author of thesis has posed the following tasks:
1. To analyse the available scientific literature about Capital Market Theory’s 3 basic models
2. To estimate Capital Market Theory’s 3 basic models both theoretical and practical implication on the prediction of the pricing on stock markets.
3. Critically estimate the results of previous investigations, dedicated to the applicability of CAPM to stock markets.

Author's comment
Work pack:
GREAT DEAL buying in a pack your savings −2,66 €
Work pack Nr. 1150952
Load more similar papers

Send to email

Your name:

Enter an email address where the link will be sent:

Hi!
{Your name} suggests you to check out this Atlants.lv paper on „Applicability of the Capital Asset Pricing Model to the Baltic Stock Markets”.

Link to paper:
https://eng.atlants.lv/w/839312

Send

Email has been sent

Choose Authorization Method

Email & Password

Email & Password

Wrong e-mail adress or password!
Log In

Forgot your password?

Draugiem.pase
Facebook
Twitter

Not registered yet?

Register and redeem free papers!

To receive free papers from Atlants.com it is necessary to register. It's quick and will only take a few seconds.

If you have already registered, simply to access the free content.

Cancel Register