Academic Journal of Business & Management, 2024, 6(5); doi: 10.25236/AJBM.2024.060511.
Xueqian Huang1, Yuxuan Lu2, Yichen Huang3, Xinge Li4, Kexin Cao5, Taoran Wang6
1International Business and Management, University of Kent, Canterbury, England
2Luoyang No. 2 Senior High School, Luoyang, Henan, China
3Economics, Xi'an Jiaotong-Liverpool University, Suzhou, Jiangsu, China
4Shenyang Conservatory of Music, Shenyang, Liaoning, China
5New Channel High School, Jinan, Shandong, China
6Shandong Experimental High School International Department, Jinan, Shangdong, China
This paper employs the Capital Asset Pricing Model (CAPM) to evaluate the risk-return profiles of three prominent Chinese tech firms—Hikvision, Haier, and ZTE, utilizing data from 2021 to 2023 from the WIND database. Our analysis reveals that all three companies demonstrate significantly positive alphas, indicating returns that exceed CAPM predictions, and betas greater than one, suggesting higher market volatility and sensitivity. These results affirm CAPM's applicability in dynamic markets like China's tech sector, offering crucial insights for investors and policymakers in understanding the balance between potential gains and inherent risks. The study highlights the importance of continuous assessment in adapting investment strategies to the rapidly evolving technological landscape.
CAPM, risk-return trade-off, Hikvision, Haier, ZTE, market efficiency, technological innovation, Chinese stock market
Xueqian Huang, Yuxuan Lu, Yichen Huang, Xinge Li, Kexin Cao, Taoran Wang. Assessing Risk-Return Dynamics in China's Tech Sector: A CAPM Analysis of Hikvision, Haier, and ZTE. Academic Journal of Business & Management (2024) Vol. 6, Issue 5: 75-82. https://doi.org/10.25236/AJBM.2024.060511.
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