Emprical Research Of CAPM On The China Mobile Telecom Industry

With the developing of Chinese information degree and the telecom industry, the China mobile telecom industry developed most rapidly. In the next few years, the development of the China mobile telecom industry will impact the developing of the China telecom industry. So it is vitally important for the China mobile telecom industry to grow steadily. And it is important for the stock market of the China mobile telecom industry to operate efficiently.We do our research on the basis of other researchers and the thesis of the CAPM. At first we introduce related theories of the CAPM and look back on the empirical research of the CAPM. Then we use empirical test to try to find out whether the CAPM can be used as far as the China mobile telecom industry is concerned. At the same time, empirical test of the CAPM can tell us the efficiency of the China mobile telecom industry's stock market. Our conclusion is that the CAPM cannot currently be used to determine the price of stock on the China mobile telecom industry's stock market and the market is not an efficient market.The meaning of our research is that we empirically test the CAPMof one industry not of one stock market. Hope that our research will be helpful for the same research of other industries.