Capital Asset Pricing Model - Hutchinson encyclopedia article about Capital Asset Pricing Model Printer Friendly
The Free Dictionary
1,082,483,700 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Capital Asset Pricing Model

   Also found in: Financial, Acronyms, Wikipedia 0.04 sec.

Capital Asset Pricing Model

Mathematical pricing model used in portfolio theory - a defensive strategy that attempts to evaluate and minimize investment risk - that examines the relationship between risk and expected return. The return on an investment is its risk premium added to its risk-free rate (the rate of return on an investment with no risk such as a treasury bill). The risk premium is the difference between the market rate of return and the risk-free rate, multiplied by the beta of the share.



How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
 Email
Feedback
?Sign in SSL protected
Email:
Password:
Register

? Mentioned in ? References in periodicals archive
 
The most commonly accepted method in finance is the capital asset pricing model (CAPM).
Assessing new project risk by determining new project beta values by Tarantino, David / Physician Executive
Beginning with the 2006 price setting, the Board will use only a capital asset pricing model (CAPM) to determine a return on equity (ROE) that reflects the return earned by private-sector service providers.
Modifications to methodology used to calculate private-sector ... by Federal Reserve Bulletin
The capital asset pricing model (CAPM), first introduced by Sharpe (1964) and Lintner (1966), has made a profound impact on the way investors understand the relationship between price and risk of capital assets.
Time-series analysis of return and beta in U.S by Park, Kwang Woo / Journal of Academy of Business and Economics
More results
 
Hutchinson browser? ? Full browser
 
 
Hutchinson Encyclopedia
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.. Terms of Use.