{"id":112496,"date":"2021-11-23T10:40:00","date_gmt":"2021-11-23T15:40:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=112496"},"modified":"2023-01-20T16:47:45","modified_gmt":"2023-01-20T21:47:45","slug":"lu-zhang-on-the-evolution-of-asset-pricing-models-and-his-first-principles-approach-to-improve-them","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/lu-zhang-on-the-evolution-of-asset-pricing-models-and-his-first-principles-approach-to-improve-them\/","title":{"rendered":"Lu Zhang On The Evolution of Asset Pricing Models And His First Principles Approach to Improve Them"},"content":{"rendered":"\n

Asset pricing models have evolved significantly over the past several decades. From the Capital Asset Pricing Model to Fama and French\u2019s 3 Factor Model to their more recent 5 and 6 Factor Models, academic research has continued to work to improve our understanding of what drives stock prices. But our guest this week thinks asset pricing models might need a revolution more than evolution.<\/p>\n\n\n\n

We speak with Lu Zhang, who is the John W. Galbreath Chair and Professor of Finance at the Fisher College of Business at Ohio State University. He is also the creator of the Q factor model, which takes a first principles approach to asset pricing that starts with economic theory rather than adopting the framework of previous models.<\/p>\n\n\n\n

We discuss the evolution of asset pricing models over time and take a detailed look at the major models that have come along the way. We then look at the philosophical arguments for why traditional asset pricing models may be taking the wrong approach and look at the details of the Q factor model.<\/p>\n\n\n\n

Listen on Apple Podcast<\/a><\/p>\n\n\n\n

Listen\/Watch on Spotify<\/a><\/p>\n\n\n\n

Watch on YouTube<\/a><\/p>\n\n\n\n

—<\/p>\n\n\n\n

Originally Posted on November 22, 2021 – Lu Zhang On The Evolution of Asset Pricing Models And His First Principles Approach to Improve Them<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This podcast from Validea discusses the evolution of asset pricing models over time and take a detailed look at the major models that have come along the way. <\/p>\n","protected":false},"author":186,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[455,18,6,8,9,26,3],"tags":[10457],"contributors-categories":[13819],"class_list":{"0":"post-112496","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-contributor-podcasts","7":"category-macro","8":"category-north-america","9":"category-region","10":"category-securities","11":"category-text-articles","12":"category-traders-insight","13":"tag-asset-pricing-models","14":"contributors-categories-validea-capital-management"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nLu Zhang On The Evolution of Asset 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