Capital Asset Pricing Model Definition

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Capital Asset Pricing Model

Definition

CAPM. An economic model for valuing stocks by relating risk and expected return. Based on the idea that investors demand additional expected return (called the risk premium) if asked to accept additional risk.

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'Capital Asset Pricing Model' appears in the definitions of these other terms on BusinessDictionary.com

efficient market hypothesis, arbitrage pricing theory (APT), capital market theories, dividend capitalization model

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