The Capital Asset Pricing Model: An Evaluation of its Potential as a Strategic Planning Tool

In this paper we provide a summary of the capital asset pricing model (CAPM) and point out how it might possibly be used as a tool for strategic planning by corporations that own a portfolio of businesses. We also point out some of the assumptions underlying the CAPM which must be satisfied if it is to be used for strategic planning. Next we include a critical appraisal of the CAPM as a strategic planning tool. Finally, we state the case for linking competitive strategy models, CAPM models, and business simulation models.

• 저널Management Science · 28(10) · 1166–1173
• 토픽Corporate Finance and Governance · Accounting
• DOI10.1287/mnsc.28.10.1166
• 저자Thomas H. Naylor, Francis Tapon