Q » What is the Capital Asset Pricing Model (CAPM)?
06 Dec, 2025
A » The Capital Asset Pricing Model (CAPM) is a financial model used to determine the expected return on an investment by correlating its systematic risk with expected market returns. It is expressed as: Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate). This model helps investors assess the risk-reward profile of an asset, aiding in better investment decision-making.
06 Dec, 2025
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