there are too many models in books can we list them all here. what they are and the formular. I start CAPM- measures risk adjusted return. Benchmark, risk free rate. The main factor is the market return. has little explanatory power compared to other multifactor models. When a security return is below the CAPM R it is overvalued if its above it undervalued and okay if it the same rate as CAPM Formular= R= Rf+B(Rm-Rf) Fama French - measures return as CAPM but add sensitivity adjusted return factors for value and size. It has better explanatory power than CAPM R=Rf+B(Rm-Rf)+B(size premium)+ B(Value premium) Pastor Stangroom- Agrees with Fama but believe liquidity also matters in return considerations R= Rf+B(Rm-Rf)+B(size premium)+ B(Value premium)+ b( Liquidity)
looks like you want to strangle your friend straumbaugh!!!
CP, ehh! how can i do that to a man of God i think he is the only pastor who mixed serving God and portfolio mgt. multiskilled. thanks for the correction.