Capital Asset Pricing Model is a model that describes the relationship between risk and expected return — it helps in the pricing of risky securities.
 | | Capital Asset Pricing Model - CAPM | | The capital asset pricing model is a model that describes the relationship between systematic risk and expected return for assets, particularly stocks. CAPM is widely used throughout finance for the pricing of risky securities, generating expected returns for assets given the risk of those assets and calculating costs of capital. | | Breaking it Down: | | The general idea behind CAPM is that investors need to be compensated... | | Read More » | | Related to "Capital Asset Pricing Model - CAPM" | | | | International Beta | | International beta (often known as "global beta") is a measure of the systematic risk or volatility of a stock or portfolio in relation to a global market, rather than a domestic market. | | Read More » | | | William F. Sharpe | | William F. Sharpe is an American economist who won the 1990 Nobel Prize in Economic Sciences for developing models to assist with investment decisions. | | Read More » | | |  | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
No comments:
Post a Comment