The plant-based milk market in the context of CAPM and three-factor model – the case of Oatly

Business School, China University of Political Science and Law, Beijing, China

^* Corresponding author: 2201365003@cupl.edu.cn

Abstract

The article examines the performance of Oatly, a plant-based food company, and the factors that influence its re-turns. Considering the CAPM and Fama-French three-factor models, tracking market volatility is a key factor for investors. The findings reveal that market risk significantly affects Oatly's performance, as shown by the positive relationship between the intercept and Mkt-RF. Investors must monitor market trends closely to make informed investment decisions. The analysis of Oatly's beta value indicates that it is a low-risk investment option, making it an attractive option for investors seeking stable returns. The study highlights the importance of investing in low-risk options, especially in the plant-based food industry. In conclusion, this study provides valuable insights into the determinants of Oatly's returns and offers a comprehensive understanding for investors seeking low-risk investments. Monitoring market trends and risks is essential for investors in the plant-based food sector, and this study serves as a useful guide for making informed investment decisions. Oatly's low-risk profile makes it an at-tractive investment option, and investors must stay vigilant and keep track of market changes to make the most of this opportunity. This study offers important insights that can help investors navigate the complex and dy-namic world of plant-based food investments.