tag:blogger.com,1999:blog-8152901575140311047.post1174940019709852941..comments2024-03-29T03:33:47.317-04:00Comments on Musings on Markets: Alternatives to the CAPM: Wrapping upAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8152901575140311047.post-77054419970386068332011-05-08T15:54:41.864-04:002011-05-08T15:54:41.864-04:00People are criticizing CAPM because it gives quite...People are criticizing CAPM because it gives quite illogical results. And at least my opinion is that it's because we are using wrong valuation model. The one we should be using is so called "Growth Optimal Portfolio". I know its math is a little bit harder and I guess thats why everybody prefers CAPM.Jay Kashinhttps://www.blogger.com/profile/08192973954109788841noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-70609357615963183882011-05-07T23:59:55.906-04:002011-05-07T23:59:55.906-04:00http://alephblog.com/2009/10/17/toward-a-new-theor...http://alephblog.com/2009/10/17/toward-a-new-theory-of-the-cost-of-equity-capital/<br /><br />http://alephblog.com/2009/10/20/toward-a-new-theory-of-the-cost-of-equity-capital-part-2/<br /><br />Dr. Damodaran, this is my attempt at a new theory for calculating the cost of equity capital.David Merkelhttps://www.blogger.com/profile/05073877918072914309noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-81399288840294049032011-05-05T20:09:56.500-04:002011-05-05T20:09:56.500-04:00Dear Professor,
Many thanks to you for shedding l...Dear Professor,<br /><br />Many thanks to you for shedding light on some alternate views and critically outlining aspects one needs to be aware before jumping ships!Vinnyhttps://www.blogger.com/profile/09357083332000634611noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-35342571023395494652011-05-03T00:31:35.165-04:002011-05-03T00:31:35.165-04:00Dear Professor,
many thanks for your interesting a...Dear Professor,<br />many thanks for your interesting and fruitful thougts. <br />Traditional risk measures are based on the assumption that risk is volatility; even in your accounting risk model (volatility in earnings). However, if you compare companies which did well in the recession with those that performed poorly, one could assume that inflexibility is more important than volatility. The speed of reaction that changing circumstances should be further tested.Fabianhttps://www.blogger.com/profile/08463619559246815317noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-56266391304393140522011-05-01T07:42:01.206-04:002011-05-01T07:42:01.206-04:00Yes it is a excellent series thank you for posting...Yes it is a excellent series thank you for posting it.Your insights and teachings have been very helpful to this amateur.mercmanhttps://www.blogger.com/profile/12762837151165004884noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-30299181355209238792011-04-30T14:15:12.131-04:002011-04-30T14:15:12.131-04:00Excellent series on alternatives to the CAPM. Than...Excellent series on alternatives to the CAPM. Thank you for sharing the ideas. I hope this helps bridge the gap between academics and practitioners. <br /><br />What is concerning is that even after 50 years of CAPM, we haven't been able to come up with a convincing better measure.Gopalhttps://www.blogger.com/profile/14509814066572881345noreply@blogger.com