Anyone can use a calculator

Article Abstract:

Using the capital assets pricing model (CAPM), accountants and managers can evaluate expected returns and risks associated with capital projects; a formula for such analysis is provided. Assumptions behind CAPM and alternative models (such as the weighted average cost of capital model) are examined. Although generally usable for one period only (usually a year), the CAPM measure three types of risk: total risk, portfolio risk and systematic risk. Diversification as a means for ameliorating such risks is briefly discussed. It is concluded that the CAPM is most applicable to investment appraisal decisions, since these concern themselves primarily with systematic risk.

Standards, Accounting and auditing, Accounting, Return on investment, Rate of return, Great Britain

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The capital asset pricing model - underlying theory

Article Abstract:

The capital assets pricing model is explained along developmental lines that assess the model's ability to depict investment risk and investment returns accurately, while analyzing the relationship between risk and return. Calculation of beta risks for various securities, pricing of the securities, and measuring the effectiveness of some portfolio theories against the capital assets pricing model are also discussed in detail, and mathematical formula are provided to illustrate the theories behind the model.

Models, Economic aspects, Risk (Economics), Investments, Risk management, Valuation, Assets (Accounting)

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What's in a name: update

Article Abstract:

A supplement is presented to the series on accounting firms' simplified family trees which contains additional information as a result of mergers and acquisitions during 1989, as well as corrections. Firms covered in the supplement include Arthur Andersen & Co., Coopers & Lybrand, and Deloitte Haskins & Sells.

History, Accounting firms, Accounting services, Arthur Andersen & Co. (New York, New York), Coopers & Lybrand L.L.P., Deloitte Haskins and Sells

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