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Academic Item

A Study on Developing of Asset Pricing Models

International Business Research

This study explores the evolution of the Capital Asset Pricing Model (CAPM) by integrating additional financial risk factors, including liquidity risks, downside risks, unexpected event risks, and operational and economic risks. These modifications enhance the model’s efficiency, leading to improved interpretations of market conditions and portfolio structures. As CAPM evolves, new variants provide better insights for financial managers, analysts, and investors, helping them assess both the advantages and limitations of these models in decision-making.