International Capital Asset Pricing Model (CAPM)
Categories: Financial Theory, Metrics
Just see: CAPM and wave a few foreign flags.
Why is this beast any different when it's "international"? Money is money, right?
Well, it is. But an entity that is truly international carries more risks, as country stability is now a Thing. Like...will those bills owed by Greece ever really get paid? Will the euro be in similar parity with the dollar under whose auspices the bills were sent? Will everyone but the U.S. still be on the metric system? Worries like that abound when CAPM goes overseas.