Author(s)

Yi-Jang Yu

Department of Economics, Ming Chuan University, Taipei, Chinese Taipei.

Mainstream asset pricing models are all inappropriate when they consistently insist on applying one single model to deal with a reality filled with different aspects of asset pricing. In addition, those models also treat the right environ-ment variable too lightly hence can not rightly do the job of asset pricing. In this study, based on the portfolio theory and the principle of supply and demand, a more reasonable asset pricing system including five different models will be suggested to provide a necessary function of automatic price stabilization and to better serve our financial market.

Asset Pricing System; Environment Variable; Portfolio Theory; Automatic Price Stabilization

Y. Yu, "The Asset Pricing System," Modern Economy, Vol. 3 No. 5, 2012, pp. 473-480. doi: 10.4236/me.2012.35062.