CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*

@article{Sharpe1964CAPITALAP,
  title={CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK*},
  author={William F. Sharpe},
  journal={Journal of Finance},
  year={1964},
  volume={19},
  pages={425-442}
}
  • W. Sharpe
  • Published 1 September 1964
  • Economics
  • Journal of Finance
One of the problems which has plagued thouse attempting to predict the behavior of capital marcets is the absence of a body of positive of microeconomic theory dealing with conditions of risk/ Althuogh many usefull insights can be obtaine from the traditional model of investment under conditions of certainty, the pervasive influense of risk in finansial transactions has forced those working in this area to adobt models of price behavior which are little more than assertions. A typical classroom… 

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References

Liquidity Preference as Behavior towards Risk
One of basic functional relationships in the Keynesian model of the economy is the liquidity preference schedule, an inverse relationship between the demand for cash balances and the rate of