David M. Gordon

(University of Saint Francis, USA)

 

 

Abstract: The purpose of this paper is to explain to individuals teaching economics some of the basics of the much utilized capital asset pricing model (CAPM). Many times academics or professionals trained in economics do not have any type of background in finance and therefore lack any knowledge of the CAPM and its uses. This disconnect prevents utilizing many financial applications in their own classes, in their own businesses or with their own research. This work serves as an introduction to the CAPM that individuals can use as a starting point to additional research, study or use in teaching.

 

 

Key words: CAPM; pricing; economics; pedagogy

 

JEL code: G10