---

G. William Schwert

University of Rochester, Rochester, NY 14627
and National Bureau of Economic Research

---

Journal of Financial Economics, 4 (January 1977) 95-125

---

This paper finds that extending popular two-parameter models of capital market equilibrium to allow for the existence of non-marketable human capital does not provide better empirical descriptions of the expected return-risk relation for marketable securities than those that come out of simpler models. This conclusion arises from the fact that relations between the return on human capital and the returns on various marketable assets are weak, so that the model that includes human capital leads to estimates of risk for marketable assets indistinguishable from those of simpler models.

Key words: Human capital, Capital asset pricing model

JEL Classifications: G12, G14, J33

---

Cited 79 times in the SSCI and SCOPUS through 2019

---

© Copyright 1977, Elsevier

---

The following file contains the reprint of this paper in Acrobat's portable data format (.pdf).

Click here to download this paper in PDF format.

---

Return to Publications Page

---

© Copyright 1998-2021, G. William Schwert

Last Updated on 6/10/2021