The CAPM is dead! Long Live the CAPM!

Interesting writeup in the CrossingWallStreet blog about an FT piece on the CAPM and how it is, in reality, a horrible predictor of stock prices.

I particularly like the comparison of the CAPM to Monty Python's Dead Parrot sketch. Also the reference to the CAPM as "completely redundant asset pricing."

It's always nice to hear that part of your very expensive education is being invalidated before you even graduate!