It is argued that the CAPM and its variants and extensions are theoretically invalid, empirically unsupported and practically useless. The efficient market hypothesis and the rational expectations hypothesis, which are two pillars of asset pricing models and neoclassical finance in general, have...

Confirmation and publication biases are demonstrated by using an example in which the extent of exchange rate misalignment (as applied to the yuan/dollar exchange rate) is measured by using six different models. Testing these models initially reveals that they form cointegrating vectors...

This paper demonstrates the hazard of “stir-fry” regressions, which are used extensively in financial research to produce desirable results by reporting only one or a small number of regressions out of the tens or hundreds that are typically estimated. It is shown, by using data on the...