Indian capital market asset pricing changes - C. Miya - Bog

Capital market plays an important role in the development of an economy and is an integral part of financial system. In the capital market, the manner in which securities are priced is core issue and it has attracted the attention of researchers for long. The risk-return relationship performs a pivotal role in pricing of securities consequently helps in making judicious investment decision making. The capital asset pricing model (CAPM) of Sharpe (1964), Lintner (1965) and Mossin (1968) marks the birth of asset pricing theory. In the development of the asset pricing model it is assumed that: