What type of study is this?

This is a Literature Review study.

September 10, 2025

Analisis Metode Capital Asset Pricing and Arbitrage Pricing Theory terhadap Investasi Saham

Key Points

CAPM demonstrates greater accuracy in predicting stock returns under stable market conditions, showing 18 supporting studies.
In contrast, APT has only 6 supporting studies, indicating it may be less effective in simpler market scenarios.
The analysis included 30 studies, highlighting the importance of financial behavior in enhancing model accuracy.
Choosing between CAPM and APT depends on specific market conditions and the needs of investors.

Abstract

This study aims to compare the effectiveness of the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) in predicting stock returns through a literature review of 30 relevant studies. The findings show that CAPM, which relies solely on market risk, is more frequently proven accurate (18 studies) compared to APT (6 studies), while the remaining studies found no significant difference. Financial behavior also plays an important role in enhancing the accuracy of both models. Overall, CAPM is more effective in stable market conditions, while APT is more suitable in complex economic environments. Model selection should be based on market conditions and investor needs.

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Cite This Study

Dewi et al. (Fri,) studied this question.

synapsesocial.com/papers/68c1c22d54b1d3bfb60ef5bc https://doi.org/https://doi.org/10.61132/rimba.v3i3.2048

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