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 traditional formula for the cost of equity is the dividend capitalization model and the capital asset pricing model (CAPM). The cost of equity is the return that a company requires for an ...

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

But did you know this relationship is a central principle in finance? It's captured by the capital asset pricing model (CAPM), which quantifies the market risk premium – the difference between ...

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 ...

Merton, Robert C. "A Reexamination of the Capital Asset Pricing Model." In Studies in Risk and Return, edited by J. Bicksler and I. Friend. Cambridge, MA: Ballinger Publishing Company, 1977.

Mullins, David W., Jr. "Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital." Harvard Business School Background Note 280-100, March 1980. (Revised October 1980.) ...