This philosophical analysis explores the consumption-based capital asset pricing model (CCAPM), focusing on its epistemological and methodological foundations. Financial markets play a crucial role in both advanced and developing economies by channeling unspent household income into savings and investments. The CCAPM aims to describe, explain, and predict asset pricing through the lens of investors' trade-offs between current and future consumption. While the model's narrative is intuitive and adheres to scientific standards, the book questions whether it truly provides actionable knowledge. Using a philosophy of science framework, the analysis begins with a primer on CCAPM topics before examining its theoretical foundations, mathematical models, and empirical results. The findings reveal that fundamental principles and auxiliary assumptions create a simplified, idealized theory of investors and markets, which often diverges from real-world scenarios. Consequently, the model's assertions frequently fail standard statistical significance tests. The conclusion emphasizes that traditional mathematical modeling, grounded in a priori principles, leads to idealized constructs that limit applicability. It suggests that more nuanced methodologies and ontological approaches to asset pricing are necessary, advocating for a shift from point forecasts to claims about tendencies in real data, as the complexity of real situations may be b
