The Capital Asset Pricing Model (CAPM) has been a key theory in financial economics since the 1960s. One of its main contributions is to attempt to identify how the risk of a particular stock is related to the risk of the overall stock market using the risk measure Beta. If the relationship...

Popular smoothing techniques generally have a difficult time accommodating qualitative constraints like monotonicity, convexity or boundary conditions on the fitted function. In this paper, we attempt to bring the problem of constrained spline smoothing to the foreground and describe the details...