Abstract: The article analyzes the theory of asset market equilibrium, some empirical investigation of CAPM and APT and some tests of the efficient market hyPothesis. The article studies the fixed hold-ing costs and the stochastic discount factors to illustrate how these factors derive upPer bound and lower bound to cause non-equilibrium. The article addresses the tendency of asset market non-equilibriun and proPoses three principles which combine general characters with individuality between equilibrium and non - equilibrium.

Key words: Portfo1io selection, Asset market, Non-equilibrium