Citizendium - a community developing a quality, comprehensive compendium of knowledge, online and free.
Click here to join and contribute
CZ thanks our previous donors. Donate here. Treasurer's Financial Report

Capital Asset Pricing Model/Definition

From Citizendium
Jump to: navigation, search
This article is a stub and thus not approved.
Main Article
Discussion
Related Articles  [?]
Bibliography  [?]
External Links  [?]
Citable Version  [?]
 
A definition or brief description of Capital Asset Pricing Model.

(CAPM) a model which relates the rate of return of an equity to the equity market rate of return and to that equity's beta factor (see the formula at [1] and see the definition of beta ).