Priced to Fail: The Arrogant Mathematics of the Capital Asset Pricing Model

Since the 1960s, the entire foundation of modern corporate finance has relied on a single, elegant mathematical equation: The Capital Asset Pricing Model (CAPM). It calculates the exact expected return on an investment based on its inherent risk (Beta). There is only one problem: the formula assumes human beings are perfectly rational, emotionless calculating machines. This highly technical fina...