On the Discrete Time Capital Asset Pricing Model

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

Abstract: We give in this chapter a presentation of the capital asset pricing model in discrete time. The presentation is usually done in continuous time. However, the discrete time model is not just a discrete time version of the continuous time model. Some significant differences occur. They are related to the fact that the usual assumption of complete markets is not satisfied in discrete time unless the randomness is modelled by a finite number of events. © 2009 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)299-324
JournalHandbook of Numerical Analysis
Volume15
DOIs
Publication statusPublished - 2009
Externally publishedYes

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