Question to Steve D'Arcy (apologies to other CASNET members)

Snaps99999 ( Snaps99999@aol.com )
Sat, 16 May 1998 17:05:20 EDT

Steve,

I have another question regarding CAPM. In one of your responses to my
earlier messages, you stated that CAPM is not a cost of capital model. In
checking the Actuarial Standard of Practice on the profit provision in
ratemaking for another purpose, I found that CAPM is described as a cost of
capital model. What can you tell me about this distinction?

Frank Schnapp

Visit the CAS Web Site at http://www.casact.org
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