CAPM Capital Asset Pricing Model

CAPM Capital Asset Pricing Model

Theory in economics describing the linkage between risk and return. Used to price risky securities. The model asserts that only systematic risk is priced by rational investors. CAPM states that the rate of zero risk securities plus risk premium equals the expected return of a security.

Related posts:

1. Asset Pricing Model
2. Asset Pricing Model
3. Black-Scholes Option Pricing Model
4. Multifactor CAPM
5. Expected Return