How CAPM is used Investors can use the CAPM equation in a variety of ways to make better-informed decisions when evaluating investment opportunities.

The CAPM and similar methods treat rates as scalar quantities. However, as is clear from our examples, risk is not a scalar, but a vector term, that is intimately tied to directionality of outcomes.

We continue our series on using portfolio theory to build a portfolio via a detour to explain the capital asset pricing model (CAPM). This week, we want to demonstrate how to use the CAPM to value ...

The capital asset pricing model (CAPM) is a financial model used to determine a security’s expected return considering its associated risk. Developed in the 1960s, CAPM has become an essential ...

The Capital Asset Pricing Model, commonly known as CAPM, is a financial model that calculates the expected return on an investment based on its risk compared to the broader market. Developed in ...

The capital asset pricing model (CAPM) is a financial model used to determine a security’s expected return considering its associated risk. Developed in the 1960s, CAPM has become an essential tool in ...