CAPM: The Model and 307 Comments About It

45 Pages Posted: 14 Nov 2014 Last revised: 28 Apr 2023

Date Written: October 17, 2017


We show, as simply as possible, the model’s development, its implications and the assumptions on which it is based.

The paper also contains 307 interesting comments and criticism from several professors, finance professionals and Ph.D. students about the CAPM: 234 basically agree in using the adjective “absurd” to qualify the CAPM and 71 do not agree for several reasons that are in sections 3 and 4. I thank very much to all of them: I have learned a lot reading (and thinking about) their opinions: real opinions of real persons that know finance and have thought about the CAPM, the market return, the beta, the market risk premium.

Keywords: CAPM; Expected beta; historical beta; required beta; Expected Market Risk Premium; Required Market Risk Premium; Expected Return to Equity; Required Return to Equity

JEL Classification: G12, G31, G32

Suggested Citation

Fernandez, Pablo, CAPM: The Model and 307 Comments About It (October 17, 2017). Available at SSRN: or

Pablo Fernandez (Contact Author)

IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
+34 91 357 0809 (Phone)
+34 91 357 2913 (Fax)


Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics