April 25, 2024
The Capital Asset Pricing Model dates back over 70 years so it is with much trepidation I claim a drastic improvement on it: the CAPM theorem holds as equality of random variables, not just their expected values.
The universal reaction to preprints has been “It can’t possibly be true, it is far to strong!” When I point out it is simply a mathematical result, so either there is a mistake in the proof or a counterexample, I get either no reply or an assertion this is a know result. When I ask for a citation nobody to date has been able to provide one. I would be grateful to a kind reviewer that could point that out and I will thank them and apologize for wasting their time with my submission.