capital asset pricing model (CAPM)

Popular Terms
One of the two leading capital market theories of 1960s and 1970s, it is based on the idea of risk aversion. It states (1) whatever the rate of return on an investment, it should be achieved with the lowest possible level of risk, and (2) a high-level of risk should be accompanied by a correspondingly high-level of return. CAPM (like its contemporary theory, arbitrage pricing theory or APT) works only in a market in equilibrium and makes other restrictive assumptions such as equal access to information, no information or transaction costs, and rational investors. See also capital market theories.
See also dividend capitalization model.


Email Print Embed

<cite id="yvPRVNP"></cite><var id="yvPRVNP"><strike id="yvPRVNP"></strike></var><cite id="yvPRVNP"><dl id="yvPRVNP"></dl></cite>
<var id="yvPRVNP"><strike id="yvPRVNP"></strike></var>
<ins id="yvPRVNP"></ins><var id="yvPRVNP"><strike id="yvPRVNP"><listing id="yvPRVNP"></listing></strike></var><ins id="yvPRVNP"></ins>
<cite id="yvPRVNP"></cite>
<cite id="yvPRVNP"></cite>
<cite id="yvPRVNP"></cite>
<cite id="yvPRVNP"></cite>
<var id="yvPRVNP"><strike id="yvPRVNP"></strike></var><var id="yvPRVNP"><dl id="yvPRVNP"></dl></var><cite id="yvPRVNP"><dl id="yvPRVNP"><thead id="yvPRVNP"></thead></dl></cite>
<var id="yvPRVNP"></var>
<var id="yvPRVNP"><dl id="yvPRVNP"></dl></var>
<ins id="yvPRVNP"></ins>
<ins id="yvPRVNP"><strike id="yvPRVNP"><menuitem id="yvPRVNP"></menuitem></strike></ins><ins id="yvPRVNP"></ins><ins id="yvPRVNP"></ins>
<var id="yvPRVNP"></var>
<cite id="yvPRVNP"><var id="yvPRVNP"><del id="yvPRVNP"></del></var></cite>
<thead id="yvPRVNP"></thead>
<var id="yvPRVNP"><ins id="yvPRVNP"><span id="yvPRVNP"></span></ins></var><menuitem id="yvPRVNP"><del id="yvPRVNP"></del></menuitem>
<cite id="yvPRVNP"><strike id="yvPRVNP"></strike></cite>
<ins id="yvPRVNP"></ins><cite id="yvPRVNP"></cite>
  • 817608552 2018-01-17
  • 816246551 2018-01-17
  • 380838550 2018-01-17
  • 181567549 2018-01-17
  • 632439548 2018-01-17
  • 501681547 2018-01-17
  • 980206546 2018-01-17
  • 588391545 2018-01-16
  • 758514544 2018-01-16
  • 604591543 2018-01-16
  • 728795542 2018-01-16
  • 4286541 2018-01-16
  • 54359540 2018-01-16
  • 857719539 2018-01-16
  • 47494538 2018-01-15
  • 796159537 2018-01-15
  • 795860536 2018-01-15
  • 16884535 2018-01-15
  • 932238534 2018-01-15
  • 453164533 2018-01-15