capital asset pricing model (CAPM)
A capital asset pricing model (CAPM) is an asset valuation model that describes the relationship between expected risk and expected return for marketable assets.
capital asset pricing model (CAPM)
A capital asset pricing model (CAPM) is an asset valuation model that describes the relationship between expected risk and expected return for marketable assets.
Additional Information
The CAPM states that the intercept of a regression equation between an asset's returns and the returns of systematic factors equals 0 percent in an efficient market, but it does not necessarily assume a single source of systematic risk.
