This is not ture for utilities companies and other monopolistic firms where new equities are rare.
For the "Current Examples" in our table, do we need to find specific company examples that exist today or have happened in the last 2-3 years? Or will it suffice to give a theoretical example of a measurement in a firm that fits the model.
For example, would this be OK.
Efficiency Theory Example
- Production returns based on shared, variable, and per unit costs divided by the total output of a factory in a given period of time.
Instructor Response: I am ok with any example which shows that you understand the theory / concept.
References
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Statman, M., Fisher, K., & Anginer, D.. (2008). Affect in a Behavioral Asset-Pricing Model. Financial Analysts Journal, 64(2), 20-29,1. Retrieved July 4, 2010, from ABI/INFORM Global. (Document ID: 1461834661).
Huberman, Gur., Wang, Zhenyu (2005). Arbitrage Pricing Theory. University of Columbia.
Beenstock, Michael; Kam-Fai Chan. (May 1986). Testing the Arbitrage Pricing Theory in the United Kingdom....
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