Consumption beta

This article is an orphan, as few or no other articles link to it. Please introduce links to this page from related articles; suggestions are available. (July 2008)

In finance, consumption beta refers to a concept in an asset pricing model where the reward-to-risk ratio of an asset is dependent not on its sensitivity (or beta coefficient) to overall market risk, as it is in the classical Capital Asset Pricing Model, but rather on its sensitivity to overall aggregate consumption.^[1] It was first proposed by Douglas Breeden in 1979.^[2]

References

1. ^ Brealey, Richard (2002). Capital Investment and Valuation. New York: McGraw-Hill. pp. p. 175. ISBN 0071383778. 
2. ^ Breeden, Douglas (September, 1979). "An intertemporal asset pricing model with stochastic consumption and investment opportunities". Journal of Financial Economics 7 (3): 265–296. doi:10.1016/0304-405X(79)90016-3. 

This economics or finance-related article is a stub. You can help Wikipedia by expanding it. v • d • e

Questions for article:
Warning: Invalid argument supplied for foreach() in /vhosts/wikipedia.openfun.org/wikipedia/index.php on line 1154