Underlying assumptions and limitations of the CAPM The CAPM is a mathematical model, and like any model it is merely a representation of reality. All models are constructed from a set of underlying assumptions about the real world, they inevitably have their limitations. The CAPM is built on the ...

Nortel vs. Raytheon Two companies taking similar actions that are obtaining very different results What is happening to the debt position? Nortel Networks engaged in several acquisitions in 1998. The effect on their income statement was staggering. Despite $17.575 billion in revenues (a $213 mi...

Investor psychology and representativenessMen, it has been well said think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one. - Charles MacKay, 1841 in his classic Extraordinary Popular Delusions and the Madness of Crowds.History has bee...

The 1929 Stock Market CrashIn early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928 and peaked at 381 in September of 1929. (1929…) It was anticipated that the increases in earnings and dividends would continue. (1929…) The price ...

1. Success as a Web Search Enginea.Why was Yahoo! such an early success on the Web?Yahoo was an early success due to a combination of factors such as timing, hard work, and a good understanding of Web surfer's tastes and needs.. In early 1995, Net mania was just flowering. It was a great ti...