The Cost of Capital: If Not the CAPM, Then What?

8 Pages Posted: 2 Sep 2021

See all articles by Ivo Welch

Ivo Welch

University of California, Los Angeles (UCLA); National Bureau of Economic Research (NBER)

Date Written: 2021

Abstract

Twenty years ago, it would have been considered heresy to doubt the usefulness of the capital asset pricing model (CAPM) in assessing the cost of capital. The author argues that today, the CAPM should not just be doubted—it should be discarded.

Suggested Citation

Welch, Ivo, The Cost of Capital: If Not the CAPM, Then What? (2021). Management and Business Review, Vol. 1, No. 1, Winter 2021, Available at SSRN: https://ssrn.com/abstract=3916459

Ivo Welch (Contact Author)

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