Business, Management and Accounting
7 years ago

CAPM debunked: Indian market defies traditional beta-return relationship.

1 view
Testing of Beta and Return in the Indian Capital Market
T. Manjunatha

Paper Summary

The study tested if a financial theory called CAPM works in the Indian stock market. They found that while the starting point of the theory matches the actual returns, the main idea of the theory doesn't explain how individual stocks or portfolios perform in India. So, in simple terms, the theory doesn't really work for the Indian market.

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