Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The Sharpe model of capital asset pricing under conditions of risk has received wide theoretical acclaim and empirical support. This paper presents an econometric study of the model with the following objectives: (a) to show the effect of measuring the model's independent variables incorrectly; (b) to derive and use a new procedure for empirically testing the adequacy of the model as it is currently formulated.