MIT Sloan Experts

Open letter to Congress regarding the coronavirus stimulus package

MIT Sloan finance faculty write in support of a stimulus package that focuses on combating the Coronavirus pandemic directly as well as helping economically vulnerable households and small businesses which are most affected by the pandemic. However, unrestricted cash injection into large corporations, they say, would be a grave mistake.

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Ideas Made to Matter

Research finds CAPM can cause significant valuation errors

Finance professionals using the CAPM model to price their takeover targets may want to update their methodology. New research shows valuation errors are not uncommon.

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