Research Article
Empirical Research Based on CAPM Model in Online Education Industry
@INPROCEEDINGS{10.4108/eai.18-11-2022.2326931, author={Suyu Liu}, title={Empirical Research Based on CAPM Model in Online Education Industry}, proceedings={Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022, Nanjing, China}, publisher={EAI}, proceedings_a={ICEMME}, year={2023}, month={2}, keywords={capm; online education; applicability}, doi={10.4108/eai.18-11-2022.2326931} }- Suyu Liu
Year: 2023
Empirical Research Based on CAPM Model in Online Education Industry
ICEMME
EAI
DOI: 10.4108/eai.18-11-2022.2326931
Abstract
Online education has played a very important role in the epidemic [1]. Exploring the applicability of the online education industry to the study of the CAPM model and the overall industry's tolerance for risks is of positive significance in promoting the development of online education and the education industry. This article selects the latest data of 10 stocks listed in Shanghai and Shenzhen from 2018 to 2020, and uses the Capital Asset Pricing Model (CAPM) to conduct empirical research on the industry. The test results show that the β coefficient has a relatively small interpretation of the risks of China's education industry, and non-systematic risks still occupy a more significant position in education industry investment. Therefore, CAPM is not suitable for evaluating the performance of education-related stocks. At the same time, this article combines the background of China's stock market to make a further analysis of this model and explain the possible reasons for its poor applicability--the Chinese stock market is highly speculative. Finally, two suggestions are put forward for investment in the online education industry for investors. One is to seize investment opportunities in vocational education. Another is to use multiple indicators to jointly assess asset risks.