The impact of COVID-19 epidemic on Chinese stock market: based on the capital asset pricing model and Fama-French Three-Factor Model

Letian Li

doi:10.54691/bcpbm.v20i.1118

Authors

Letian Li

DOI:

https://doi.org/10.54691/bcpbm.v20i.1118

Keywords:

Fama-French Three-Factor Model, CAPM model, Chinese A Stock Market, COVID-19 Epidemic

Abstract

According to macroeconomic theory, most investors usually focus on two factors when making investments: one is investment income, and the other is investment risk. In the research on the trade-off between risk and return, CAPM (capital asset pricing model) and Fama-French three-factor model are one of the representative research results in the history of financial development. This article will use these two models to analyse China's A-share market before and after the epidemic, and then study the impact of COVID-19 on China's capital market

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