As a trained physicist, I constantly wonder why economists and finance professionals are so adamant to draw investment recommendations from models and theories that are obviously useless. My favourite example of this behaviour is the use of the Capital Asset Pricing Model (CAPM) in finance. As most readers of this blog will know, the CAPM was developed in the 1960s by
The models that won’t die
The models that won’t die
The models that won’t die
As a trained physicist, I constantly wonder why economists and finance professionals are so adamant to draw investment recommendations from models and theories that are obviously useless. My favourite example of this behaviour is the use of the Capital Asset Pricing Model (CAPM) in finance. As most readers of this blog will know, the CAPM was developed in the 1960s by