Application of Big Data in Stock Market based on Capital Asset Pricing Model
DOI:
https://doi.org/10.54097/hbem.v1i.2581Keywords:
CAPM; Financial Beta; Risk and Return; Asset Pricing; Stock Return.Abstract
This text aims to discuss the application value of the capital asset pricing model in real life. In this case, the stock price performance of Exxon Mobil and ConocoPhillips from September 2019 to June 2022 was analyzed by calculating the expected earnings of the two stocks and comparing the expected value to the real value. The outcome turns out that the calculated value showed a big deviation, which leads to the conclusion that the CAPM model theoretically can predict the expected earnings of stocks. However, this can be obtained from our calculation results, but affect the stock price factors, war, national economic conditions, macro policy, and so on, it requires a long time of large deviation to make this conclusion confidence, so the CAPM model cannot predict the expected earnings of stocks in the short term
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