Economics focus

摘要

Since the stockmarket bubble burst more than three years ago, investors have had ample time to ponder where to put the remains of their money. Economists and analysts too have been revisiting old ideas. None has been dearer to them than the capital asset pricing model (CAPM), a formula linking movements in a single share price to those of the market as a whole. The key statistic is "beta": the proportion of a given change in the market that, on average, is reflected in the price of the share.