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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Related Terms
Jensen index, inefficient portfolio
'Capital Asset Pricing Model
' appears in the definitions of these terms on BusinessDictionary.com
arbitrage pricing theory (APT), capital market theories, dividend capitalization model, efficient market hypothesis
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