TY  - JOUR
T1  - Is CAPM an Absurd Model?
AU - Nwude, E. Chuke 
JO  - International Business Management
VL  - 10
IS  - 20
SP  - 4824
EP  - 4841
PY  - 2016
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2016.4824.4841
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2016.4824.4841
KW  - CAPM
KW  -risk-free rate of return
KW  -equity beta
KW  -equity market risk premium
KW  -required rate of return to equity
KW  -market return
AB  - As it were, there is no clear cut understanding of the belief on the predictive power of CAPM as enunciated by Sharpe supported by Lintner and Mossin with particular reference to Nigerian Stock Exchange (NSE) stocks. In the light of this assertion, the objective of this study is to apply CAPM on the NSE sector stocks from 2000-2012. Being an empirical study, secondary dataset collected from the financial statements of the subject-firms, NSE/CBN was used. The study concludes that the CAPM is not a good predictor of stock return in the selected sectors of the NSE.
ER  -