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Tackling the Financial Crisis Author(s):Michael Keaney Author Address:Metropolia Business School Source:Political Studies Review Vol.

: 10, No.: 1, January 2012 [Page 63-72]Keyword(s):Regulation; Finance; Marxism; Globalisation Abstract Following the onset of the global financial crisis in 2007, there has been an abundance of books and articles purporting to explain its causes and consequences, with some offering tentative remedies. One of the major targets of criticism was the economics profession, which ignored the warnings of impending catastrophe prior to the onset of the crisis. As a result its public esteem suffered, much like that of the bankers and other professional groups implicated in the crisis. The books under review in this article represent a broad cross-section of work undertaken within the disciplinary boundaries of political science. As such, they provide complementary insights that yield deeper understanding of both the origins of the crisis and the nature of the solutions required to prevent a recurrence. Helleiner, E., Pagliari, S. and Zimmermann, H. (eds) (2010) Global Finance in Crisis: The Politics of International Regulatory Change. London: Routledge. Ouroussoff, A. (2010) Wall Street at War: The Secret Struggle for the Global Economy. Cambridge: Polity Press. McDonough, T., Reich, M. and Kotz, D. M. (eds) (2010) Contemporary Capitalism and Its Crises: Social Structure of Accumulation Theory for the 21st Century. Cambridge: Cambridge University Press. Palan, R., Murphy, R. and Chavagneux, C. (2010) Tax Havens: How Globalization Really Works. Ithaca NY: Cornell University Press.

Relevance of Capital Asset Pricing Model A Review Dr. Iqbal* *Department of Banking and Finance, The Kingdom University, P.O. Box 40434, Kingdom of Bahrain, Bahrain. Online published on 11 January, 2012. Abstract Though it is commonly said that higher the risk higher would be the returns, the questions that remain are, what type of risks are awarded and what is risk premium per unit of risk. A few equilibrium asset-pricing models attempted to answer these questions. Out of these, Capital Asset Pricing Model (CAPM) is the most popular and widely used model. It was independently

developed by Sharpe (1964), Lintner (1965), and Mossin (1966). Fama (1968), Black, Jensen and Scholes (1972), Fama and Mac Beth (1973), and Fama and French (1992) and others proposed further refinements. The CAPM provides a precise prediction of the relationship between the risk of an asset and its expected return. In the Indian stock market the empirical studies on CAPM showed mixed results. Roll's critique has attracted attention of many researchers and resulted in popular articles such as Is Beta Dead? Is Beta Dead or Alive? Are Reports of Beta's Death Premature? Is Beta Dead Again? that effectively reduced the popularity of CAPM in the world of finance in 1992. The debate regarding superiority of Asset Pricing Theory (APT) to CAPM is continuing. The empirical testing of APT is still in its early stage and concrete results in favour of APT or against CAPM do not exist. Till then, CAPM is expected to dominate the capital market as a measure to ascertain expected returns of risky securities