Comparative Study of the Investment Analysis between Liquor and Beer Industry--Based on the Application of Capital Asset Pricing Model

Abstract

The application of Capital Asset Pricing Model in investment analysis can calculate the expected return rate of assets and optimize the allocation of investors for assets. Chinese liquor and beer industry has always been a hot investment field. This research will select the daily closing price of 21 stocks respectively in Shanghai and Shenzhen from the liquor and beer industry from 2012 to 2021. It is interesting to find that there is indeed a positive correlation between the company's stock return rate and the market return rate, but the CAPM model is not suitable for the analysis of the stock value of the liquor industry companies. However, in the beer industry, the situation is quite different. It can be considered that CAPM model can be used to analyze the beer industry. When the investors conduct the investment analysis of the stocks in the liquor and beer industry, they should not only rely on the value to choose the stocks, but also combine the macro environment and the development ability of the enterprises themselves.