The course focuses on the some of the most widely used linear asset pricing models, such as the CAPM and the 4-factor model of Fama and French (1993) and Carhart (1997). The use of instrumental variables and their applications to corporate finance will also be discussed
- Simple regressions and the Capital Asset Pricing Model
- Multivariate regressions. Application: Multifactor asset pricing models
- Instrumental variable regressions. Application: Performance of family firms.