TITLE:
The Asset Pricing System
AUTHORS:
Yi-Jang Yu
KEYWORDS:
Asset Pricing System; Environment Variable; Portfolio Theory; Automatic Price Stabilization
JOURNAL NAME:
Modern Economy,
Vol.3 No.5,
September
28,
2012
ABSTRACT: 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.