We analyze the factors that affect the formation of investors＇ beliefs, then put forward the assumption that investors＇ beliefs are subject to the normal distribution. Based on such assumption, a heterogeneous belief-based equilibrium model is presented with short-selling constraints assumption. Our model proves that not only the factors that affect the future cash flows of a company will have influence on the price of the company＇ s stock , but the dispersion of investors＇ opinions on the company＇s stock will also matter. Furthermore our model provides a consistent interpretative frame for some popularly reported anomalies