Abstract :
Abstract Asset pricing, a cornerstone of modern finance, attempts to unravel the complexities underlying the valuation of financial assets, encompassing stocks, bonds, derivatives, and other securities. Understanding asset pricing is crucial for investors, portfolio managers, and financial institutions to make informed investment decisions and effectively manage risk. This article delves into the theoretical and empirical foundations of asset pricing, exploring the factors that drive the valuation of financial assets.
Keyword :
Keywords: Asset pricing, capital asset pricing model (CAPM), risk and return trade-off, factor models, behavioral finance