The capital asset pricing model is a model that allows to determine the theoretical rate of asset returns required by an investor, given the asset systematic risk or market risk.

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Is this methodology to calculate Alpha using multi-factor regression model correct?

I am trying to find out Historical Alphas of a bunch of fund returns ${F_i}$ by Using Regression Model$(stepwise)$ with regressors as its underlying exposure-returns(risk-free rate subtracted) i.e. ...
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Best method for determining the market value of a stock before it is issued

I am attempting to determine the hypothetical market value of a stock for a company emerging from bankruptcy as of a date prior to actual the issuance of the stock. For example, let's say the formerly ...
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How to test if two portfolios have the same composition

I'm facing two different portfolios in CAPM framework derived as $$\omega_P=\Sigma^{-1}\frac{E(r)-r_f}{H}(\mu-\iota'r_f)$$ on the same assets but for example on different time sample or on the same ...
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How to use the asset covariance matrix for risk analysis in excess returns equation

New here and I have a question that may be very basic but despite my research I cannot connect the dots. I would like to know how to connect the nxn asset covariance matrix for an efficient tangency ...
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CAPM Model Required Return Calculations

In a CAPM model how would one calculate p given sigma, beta, and required return? How would one calculate beta given sigma and p. and how would one calculate required return only given sigma and p?
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what is a reasonable beta in CAPM?

I want to predict expected returns for assets using a CAPM, to calculate unexpected (unpredictable, idiosyncratic, non-systemic) returns in portfolios. My CAPM estimated on monthly total gross ...