Strategy Driven

JANUARY 13, 2013

Anyone contemplating pursuit of their PMP or CAPM certification within the next 12 months needs to know that both the PMP and CAPM examinations will change from dependence on the PMBOK Guide® Fourth Edition to focus on the PMBOK Guide® Fifth Edition on July 31, 2013.

PMBOK 50

PMBOK CAPM Resources Business Intelligence 50

Harvard Business Review

MARCH 10, 2011

When executives evaluate a potential investment, whether it's to build a new plant, enter a new market, or acquire a company, they weigh its cost against the future cash flows they expect will spring from it. Not at all, he said, because it's "no secret that applying the CAPM is as much an art as financial science." McNulty et al.

CAPM 15

CAPM Cost Discounted Cash Flow Cost of Capital 15

Harvard Business Review

MARCH 10, 2011

In estimating the cost of equity, nearly nine out of ten organizations use the capital asset pricing model (CAPM), which calculates the cost of equity using a risk-free rate, beta factor, and a market risk premium, each of which introduces significant variability. Current market debt/equity ratio. Under $1 billion revenue.

Cost of Capital 15

Cost of Capital CAPM Cost Discounted Cash Flow 15

Harvard Business Review

OCTOBER 14, 2013

At the annual meeting of the American Finance Association in 1969, Fama presented a paper (published the next year in the Journal of Finance ) summing up what he and others had learned about stock market behavior over the previous decade and sketching out a way forward. Shiller, who got his Ph.D. It didn’t change Fama’s mind.

CAPM 11

CAPM Finance Price Efficiency 11

Harvard Business Review

JANUARY 15, 2014

Is market performance predictable for a specific product or class of products? respectively, suggesting that market risk is the major driver of our inability to predict. Look at the variance of your new-market products. Though there are multiple types of prediction, the gold standard is the prediction of precise outcomes.

Black-Scholes 9

Black-Scholes Productivity Products CAPM 9

Harvard Business Review

JUNE 18, 2015

We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for. Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

APRIL 2, 2014

Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. You’d have this beta with the market, so you have the riskless rate plus beta times the equity premium. It’s not something that necessarily resonates a lot with people in the markets or people in the world.

CAPM 10

CAPM Discount Price Finance 10