Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other asset within the context of its intrinsic risk. Used primarily to analyze ...

The Capital Asset Pricing Model (CAPM) says that you can get a low fixed return (like on Treasuries) or you can get a higher ...

The Capital Asset Pricing Model (CAPM) is a simple heuristic for thinking about market returns. Basically, the idea is that the main risk that you can’t diversify away from is collective ...

The cost of equity funding is generally determined using the capital asset pricing model (CAPM). This formula utilizes the total average market return and the beta value of the stock in question ...

Mullins, David W., Jr. "Diversification, the Capital Asset Pricing Model, and the Cost of Equity Capital." Harvard Business School Background Note 276-183, March 1976. (Revised November 1993.) ...

Merton, Robert C. "A Dynamic General Equilibrium Model of the Asset Market and Its Application to the Pricing of the Capital Structure of the Firm." Sloan School of Management Working Paper, No.

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New ...