Abstract
Investors prefer returns and dislike risks. They pursue the highest risk premia (the difference between the expected returns and the riskless interest rate) in financial markets. Modem finance theory helps investors make their choice about how to allocate their limited funds to different assets. Portfolio theory which is originally proposed by Markowitz (1959) is considered the beginning of modem finance theory. Since then, a lot of researchers came up with many models and algorithms during the last five decades [Deng, Wang and Xia (2000)].
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© 2002 Springer-Verlag Berlin Heidelberg
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Wang, S., Xia, Y. (2002). Capital Asset Pricing: Theory and Methodologies. In: Portfolio Selection and Asset Pricing. Lecture Notes in Economics and Mathematical Systems, vol 514. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-55934-1_8
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DOI: https://doi.org/10.1007/978-3-642-55934-1_8
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-42915-9
Online ISBN: 978-3-642-55934-1
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