Is the Capital Asset Pricing Model Appropriate in Tax Litigation?
Valuation Strategies, Volume 1, Number 3, January/February 1998
11 Pages Posted: 1 Dec 2013
Date Written: January 1, 1998
Unless the motivation of the party introducing CAPM evidence is to confuse the court, use of the model should be rare in tax litigation. When confronted with an adversary who bases part of an argument in a tax dispute on the CAPM, one can introduce arguments presented here to invalidate both the model and the argument on which it is based.
Keywords: tax valuation, CAPM, capital asset pricing model
JEL Classification: E62, H21, K34
Suggested Citation: Suggested Citation