Intra-equilibrium and Inter-equilibrium analysis in capital market theory: a clarification

Abstract

THE THEORY OF capital asset pricing under uncertainty has received considerable attention in the literature on finance following the initial formulations of Sharpe (1964), Lintner (1965), and Mossin (1966). However, the interpretation of the capital asset pricing model in terms of its implications for allocation of resources in the economy, has been the subject of much controversy.