Theoretical and Scientific Review of Asset Pricing Models

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 Essay regarding Theoretical and Empirical Review of Asset Prices Models

Intercontinental Journal of Economics and Financial Concerns Vol. two, No . a couple of, 2012, pp. 141-178 ISSN: 2146-4138

Theoretical and Empirical Review of Asset Pricing Models: A Structural Synthesis Ећaban Г‡elik Deparment of International Trade and Financing, Yasar School, Izmir, Poultry. Tel: +90-232-4115343; Fax: +90-232-4115020. E-mail: saban. [email protected] edu. tr

SUMMARY: The purpose of this kind of paper is to give a extensive theoretical review devoted to advantage pricing types by emphasizing static and dynamic versions in the range with their empirical investigations. A considerable amount of financial economics literature devoted to the concept of asset pricing and their implications. The primary task of asset pricing model is seen as the right way to evaluate the present value with the pay offs or cash flows discounted for risk and period lags. The problem coming from discounting process is usually that the relevant factors that impact the pay offs vary throughout the time although the theoretical framework continues to be useful to combine the changing factors in to an asset costs models. This paper floods the space in literature by giving a thorough review of the models and evaluating the historical stream of empirical investigations by means of structural empirical review. Keywords: Financial economics; Asset charges; Static CAPM; Dynamic CAPM; Structural empirical review JEL Classifications: G00; G12; G13

1 . Advantages In order to easily simplify the concept of advantage pricing, it requires to give a snapshot in the literature and a brief review of perspectives in the field in addition with to describe what meant simply by an asset. The assets, economical or non-financial, will be thought as generating high-risk future shell out offs sent out over time. Costs of an property can be seen as the present worth of the pay out offs or cash flows discounted to get risk and time lags. However , the difficulties coming from discounting process is always to determine the kind of factors that affect...