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The Capital Growth Model: An Empirical Investigation

Published online by Cambridge University Press:  19 October 2009

James L. Bicksler  and
Edward O. Thorp
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Extract

Modern micro-capital theory offers three major alternative choice theoretic approaches from which a set of market equilibrium prices can be derived. These approaches are:

1. Time-state preference theory of Arrow [1] and Debreu [6],

2. The capital asset pricing model (hereafter CAPM) of Sharpe [34], Lintner [23], and Fama [7],

3. The capital growth model of Kelly [16], Breiman [5], and Latané [17]

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 8 , Issue 2 , March 1973 , pp. 273 - 287
Copyright
Copyright © School of Business Administration, University of Washington 1973

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