INFLUENCE OF INVESTMENT DECISIONS AND CONSUMPTION ON ASSET PRICING: CCAPM APPROACH

Purpose of the study: This study examines influence investment decisions and consumption on asset pricing from 1980 to 2016.
 Methodology: has used a quantitative research design secondary source is deployed collect data 2016. The was gathered Saint Louis Fed, whereas Standard Poor’s 500 (S&P index at closing price first day month) Yahoo Finance. software for analysis R Studio statistical methods such as descriptive statistics, Generalized Method Moments (GMM) model Fitting Consumption Capital Asset Pricing Model (CCAPM) performed examine pricing.
 Main Findings: finding shows that Personal Expenditures: Nondurable Goods (PCE): goods, (PCEN) 1-Year Treasury Constant Maturity Rate (GS1) jointly accounted about 7.9% variance observable in excess return SP500. Furthermore, independently, GS1 (annualized Rate) significant while PCE (Personal Goods) PCEN: goods were insignificant.
 implication Study: current useful investors especially fund managers across globe determine what they expect their putting capital risk it.
 Novelty/Originality this Studies have been conducted analyze impact decision based CAPM model, introduces by deploying CCAPM approach which an extension uses beta instead market explain expected premiums over risk-free rate.