Capital market theory: Is it relevant to practitioners?.
Financial planning practitioners use capital market theory each time they put together a financial plan, a retirement plan, or an investment plan for a client. The major academic theory in this areas the past 30 years is the capital asset pricing model (CAPM). A paper explores the traditional CAPM and discusses the strengths and weaknesses of this classic model. The paper also explores the current research in capital market theory and discusses the implications of the modern theories for financial planning.
|Main Author:||Nawrocki, David.|