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Theoretical Framework for Stock Pricing Process based on Micro-Economic Decision Model
Research Papers in Economics and Finance
View Archive Info| Field | Value | |
| Title |
Theoretical Framework for Stock Pricing Process based on Micro-Economic Decision Model
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| Creator |
Kaganov, Vitaly
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| Subject |
Asset Pricing
CAPM Risk Appetite Economic Approach |
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| Description |
The most common model for asset pricing (CAPM) is problematic and does not match the reality. In this article, I introduce a theoretical framework for a new model which aims at avoiding the problems of CAPM and keeping its advantages, therefore allowing universality of asset pricing. The model is built on the economic principles, using a budget constraint and a Risk Appetite (RA) function. It is based on the micro-economic decision model, involving an expected value and dividing a stock price to objective and subjective prices. As a result, rational based individuals, just like individuals with non-rational factors, may use the model to calculate a future price stock in exactly the same way.
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| Publisher |
Poznań University of Economics and Business
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| Date |
2017-07-25
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
https://ref.ue.poznan.pl/index.php/REF/article/view/40
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| Source |
Research Papers in Economics and Finance; Vol. 2 No. 2; 29-37
2543-6430 |
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| Language |
eng
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| Relation |
https://ref.ue.poznan.pl/index.php/REF/article/view/40/12
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