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Case: The CAPM is wanted: Dead or Alive (Fama and French(1996)). Critically examine the empirical performance of the CAPM, and why Fama and French argue

Case: “The CAPM is wanted: Dead or Alive” (Fama and French(1996)).

Critically examine the empirical performance of the CAPM, and why Fama and French argue that the model is dead.

Discuss the alternative factor models that have been developed to address the poor performance of the CAPM.(1500 words count)

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Introduction The Capital Asset Pricing Model CAPM has been a cornerstone in finance providing a framework for understanding the relationship between risk and expected returns However the empirical per... blur-text-image

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