This helps managers to make informed decisions about possible reactions based upon systematic events. (Estrada, 2002)
Moreover, Brown (2010) determined that different approaches must be utilized under the CAPM model to account for risk. This is because the markets are constantly shifting and new events will take place which change the thinking of economists, analysts, fund managers and investors. To stay on top of what is happening, requires utilizing contrasting forms of investigation during the process. These insights are showing how different forms of regression analysis must be utilized to fully understand what is taking place. (Brown, 2010)
As a result, the CAPM approach can provide a good background about what is happening in the markets and effectively accounting for risks. However, there are times when different forms of analysis must be utilized. The best way to achieve for these objectives is use other areas which can be augmented under the CAPM model. (Chang, 2011)
For instance, Chang (2011) concluded that regression analysis is successful...
Stock Portfolio Management Project Selected 10 companies Company Symbol purchase date purchase price Apple, Inc. APPL Industry/Sector: Technology/Personal Computer -- Investment Style: Large Growth Brocade BRCD Communications Systems Inc. Industry/Sector: Technology/Data Storage -- Investment Style: Small Growth Joy Global Inc. JOYG Industry/Sector: Farm/Const/Mach -- Investment Style: Large Growth Ctrip.com CTRP Industry/Sector: Consumer Services -- Investment Style: International Gerdau SA GGB Industry/Sector: Steal & Iron -- Investment Style: International Gol Linhas GOL Aereas Inteligentes SA Industry/Sector: Regional Airline -- Investment Style: International Green Mountain GMCR 10/21/2009 Coffee Roasters Inc. Industry/Sector: Processed Pkgd gds -- Investment Style: Small Growth Rio Tinto PLC RTP 10/21 /
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