Theoretical Framework for Stock Pricing Process Based on Micro-Economic Decision Model

• Autorzy: Vitaly Kaganov
• Języki publikacji: EN

Abstrakty

EN

The most common model for asset pricing (CAPM) is problematic and does not match the reality. In this article, I introduce a theoretical framework for a new model which aims at avoiding the problems of CAPM and keeping its advantages, therefore allowing universality of asset pricing. The model is built on the economic principles, using a budget constraint and a Risk Appetite (RA) function. It is based on the micro-economic decision model, involving an expected value and dividing a stock price to objective and subjective prices. As a result, rational based individuals, just like individuals with non-rational factors, may use the model to calculate a future price stock in exactly the same way.(original abstract)

Słowa kluczowe

EN

Asset valuation; Decision-making models; Prices

PL

Wycena aktywów; Modele podejmowania decyzji; Ceny

• Czasopismo: Research Papers in Economics and Finance
• Rocznik: 2017
• Tom: 2
• Numer: nr 2
• Strony: 29--37

Twórcy

autor

Vitaly Kaganov

• Poznań University of Economics and Business, Poland

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Identyfikatory

DOI

10.18559/ref.2017.2.4