What is the capital asset pricing model (CAPM)? What are the assumptions that underlie the model?
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What is the capital asset pricing model (CAPM)? What are the assumptions that underlie the model?
Capital Asset Pricing ModelThe Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. The CAPM is a model for pricing an individual security or portfolio. For individual securities, we make use of the security market line (SML) and its...
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The Capital Asset Pricing Model CAPM is an equilibrium model which specifies the relationship betwe...View the full answer
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Related Book For 
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
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