Author(s)

Wenwen Yang

Corresponding Author

Wenwen Yang

ABSTRACT

As a basic model for investors to choose investment strategies in the capital market, the effectiveness of CAPM model is often controversial. In this paper,10 stocks from automobile industry and the energy industry are selected as samples and the least square regression of CAPM is carried out. The validity of CAPM model is tested from the three aspects of the regression equation: the α values, the β values and the coefficient of determination.

KEYWORDS

CAPM Model, Oil Industry, Automobile Industry, Effectiveness