Do we need CAPM for capital budgeting?” Do you agree or disagree with the authors' position? Why or why not? Discuss the characterization of Jagannathan and Meler’s assumptions. Are they valid?

I agree with the conclusion drawn by the author as there is loads of relevant academic
literature which indicates that the CAPM model does not hold in reality. The various
empirical studies done to check the validity of the model have mostly resulting in failure and
while the companies on the face of it may be using this model but they make their own
adjustments through the use of hurdle rate which ensures that there capital budgeting
evaluation is not adversely impacted. Besides, Fama and French have adopted...