Warning: the City's formula for pricing shares is bust

Tim Bennett explains why the 'capital asset pricing model' (CAPM) - a key tool used to help analysts value shares - doesn't work.

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Tim Bennett looks at the 'capital asset pricing model' - or CAPM - a key tool used to help analysts value shares, and explains why it doesn't work.

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Tim Bennett

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.

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