A non-parametric test of the conditional CAPM for the Mexican economy

Many models have been suggested to describe how investors manage risk and value risky cash flows. Among them, the most widely used is the Sharpe-Lintner-Black Capital Asset Pricing Model (CAPM).However, many anomalies and evidence against this version have been presented. To assume that the CAPM hol...

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Detalles Bibliográficos
Autor: Del Castillo Spíndola, Jorge H.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2006
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:español
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/151
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/151
Access Level:acceso abierto
Palabra clave:conditional mean-variance efficiency
betas of the assets
market risk premium
non-parametric testing
C12
C13
C14
G12
G13
G14
CAPM
eficiencia media-varianza
condicional
betas de los activos
premio de riesgo de mercado
prueba no-paramétrica
Descripción
Sumario:Many models have been suggested to describe how investors manage risk and value risky cash flows. Among them, the most widely used is the Sharpe-Lintner-Black Capital Asset Pricing Model (CAPM).However, many anomalies and evidence against this version have been presented. To assume that the CAPM holds in a conditional sense is to assume that the betas and the market risk premium vary along time. We present a test of the conditional version of the CAPM for the Mexican economy, that uses a non-parametric methodology suggested by Wang that avoids the problem of functional misspecification of the betas of the assets.