Yo why do we keep using CAPM? I thought it only holds under very certain assumptions which are basically never present in the real market. All my homies hate CAPM?

likesmartfunny
Posting as :
works at
You are currently posting as works at

Lol, what is the better alternative?

like

That’s just capm with additional factors. I haven’t seen one project that doesn’t use a modified capm approach. Or more specifically, none of the projects that I’ve worked on uses erp as the only risk factor.

like

No CAP(m)

likefunny

“It only holds under very certain assumptions which are basically never met irl”

Please stop dissing the entirety of valuation like this.

Oh you were just talking about capm..

like

I think it has to deal with the fact that it simultaneously (1) has the appearance of being rigorous/„scientific“ and not being a complete arbitrary way to come up with discount rate and (2) at the same time is simple enough to be followed and understood by a broad circus of people who need to (at least roughly) understand valuation, but most of whom do not have enough background/willingness/possibilities to study and understand more complex models (auditors, management, business owners, judges, regulators etc etc).

And once it had established itself as a convention/habit it is really hard to kick it out - unless the new model is also simple enough and is really proven to be superior (and even if this is the case it would take a lot of time).

& what is this new model you’re referring to?

Sorry meant “a new model”. Was referring to a theoretical (and not particularly likely) scenario when a new simple an obviously superior model suddenly emerges

Related Posts

Hi Guyz
I joined salesforce as technical consultant on 5th september 2022. Will I be eligible for appraisal rolling out in feb 2023 ?

like

I have over 5.5 YOE in Business Development, my designation is Business Development Manager. My CTC is 7 LPA + Variables. Now, looking for a change. How much can I expect in terms of annual salary? Please suggest!

like

Help! Any philly activation company recos?

Photo for attention:

Post Photo
like

I am at salary negotiation phase with accenture hiring team. Somebody give me pro tips to fetch more CTC.

like

I’m quitting my job tomorrow morning. I don’t have a new job lined up. I’m scared, but also excited? I’ve felt under utilized for months, and haven’t had a promotion after two years. I never take risks like this, but life is too short. Is this a bad choice?

likeupliftingsmarthelpful

Maybe stupid question....With global slowdown, does JPMC fire any new hires?

like

Anyone here have any experience with The Mars Agency? What’s it like over there?

Hi, i am going to have final round soon and, yoe 16. Including 6 years onsite experience. AZURE big data architect. If i clear final round, how much I can ask (current is 34LPA). I have offers from LTI,TCS and few other companies (mid level). Need your input for my role growth at Tiger . Thanks

like

Hi all,
I have an urgent question regarding the flight and weight allowance that TCS arranges for Australia.
Kindly advise!!! Urgently needed!!

like

How is WLB in Tiger Analytics?
Do they allow project movement , If we don't like the kind of work we get in project?

like

Hello All, what is the difference in Data Scientist and ML engineer positions at Tiger Analytics. TIA.

like

Is it easy to change projects in Tiger Analytics.

Also how is the performance bonus paid in tiger? Monthly or at the end of the year only

like

Need Help.

So, I recently joined a new company. They have put me to a project which I have no knowledge, no skill there.

I'm new, project is new, no one to give KT.

What I'm a supposed to do?

like

Hello guys is anyone living in chennai nearest to tril infopark tharamani? I am looking for a pg please do let me know if anyone vacancy is there

like

Friend of mine is going to EYP following their MBA. They asked if they would be able to lateral over in 2 years to PE. Any tips on how they can best set themselves up to do so? (Previous experience was naval academy and 5 years served as an officer)

like

My brother is a college student in Minnesota looking for a summer internship in our field. Is anyone here hiring or know of someone who may be willing to provide that opportunity?

like

Are there any agencies in NY hiring a strategist during the pandemic? I heard many are getting laid off :(

like

I have been working remotely since covid getting nothing but positive reviews. My company is not remote friendly and is now telling me I have to return to the office or I lose my job. I just found out a co-worker had a remote position created for them, without a job posting, without an interview and without the experience required (normally a license or certification would be mandatory). I understand life isn’t fair but is there an ethical problem with this?

like

Looking to break into the food tech industry in the bay area - has anyone worked for any empowering companies that they can speak for as having a truly strong company culture? Have worked as a program manager for the last two years at a sustainable food company, but the diversity, equity and inclusion, work-life balance, and level of respect are all oldschool and not ideal for queer, non-binary folx such as myself. THANK YOU in advance :)

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal