Black CAPM (zero-beta CAPM)

Target entity: Black CAPM (zero-beta CAPM)
Context triple: [Fischer Black, theoryDeveloped, Black CAPM (zero-beta CAPM)]

• A. Fama–French three-factor model
  The Fama–French three-factor model is a widely used asset pricing framework that extends the traditional CAPM by explaining stock returns through market risk, company size, and value factors.
• B. Black–Scholes model
  The Black–Scholes model is a fundamental mathematical framework in financial economics for pricing options and other derivatives by modeling asset prices as stochastic processes.
• C. Lucas asset pricing model
  The Lucas asset pricing model is a foundational rational expectations framework in macro-finance that explains asset prices through representative-agent intertemporal consumption choices under uncertainty.
• D. Markowitz
  Markowitz is a locality in what is now Poland that is historically notable as the birthplace of the classical philologist Ulrich von Wilamowitz-Moellendorff.
• E. Modigliani–Miller theorem
  The Modigliani–Miller theorem is a foundational result in corporate finance stating that, under certain idealized conditions, a firm's value is unaffected by its capital structure or how it is financed.
• F. None of above. chosen
• G. Unsure - the case is ambiguous/there is not enough information to decide.

Target entity: Black CAPM (zero-beta CAPM)
Target entity description: Black CAPM (zero-beta CAPM) is an extension of the Capital Asset Pricing Model that allows for asset pricing without a risk-free asset by using a zero-beta portfolio as the benchmark for expected returns.

• A. Fama–French three-factor model
  The Fama–French three-factor model is a widely used asset pricing framework that extends the traditional CAPM by explaining stock returns through market risk, company size, and value factors.
• B. Black–Scholes model
  The Black–Scholes model is a fundamental mathematical framework in financial economics for pricing options and other derivatives by modeling asset prices as stochastic processes.
• C. Lucas asset pricing model
  The Lucas asset pricing model is a foundational rational expectations framework in macro-finance that explains asset prices through representative-agent intertemporal consumption choices under uncertainty.
• D. Markowitz
  Markowitz is a locality in what is now Poland that is historically notable as the birthplace of the classical philologist Ulrich von Wilamowitz-Moellendorff.
• E. Modigliani–Miller theorem
  The Modigliani–Miller theorem is a foundational result in corporate finance stating that, under certain idealized conditions, a firm's value is unaffected by its capital structure or how it is financed.
• F. None of above. chosen