Asset Pricing Model and Their Application

Abstract

Wise and old professionals and sincere lecturers are doning caps as they like the complex section in finance because of its deep investment principles and complicated market structures. The primary purpose of explaining asset pricing in the context of risk and benefits where it drives the investment environment is the core of this field. This university journey had started with a beginning characterized by the understanding of theories and evidences. Two foundational models serve as the foundation of our academic path: Fama-French Five-Factor model and CAPM have been the model of the modern daying and the ancient CAPM. These models provide glimpse toward a deeper understanding