The capital asset pricing model (CAPM) is a financial model used to determine a security’s expected return considering its associated risk.

The Capital Asset Pricing Model, commonly known as CAPM, is a financial model that calculates the expected return on an investment based on its risk compared to the broader market.

Later researchers referred to it as a model, adding the M. Second, once it became known as the capital asset pricing model, it was referred to by the acronym CAPM, pronounced “cap-em.” ...

Learn about the Fama French Three Factor Model, its formula, and how it enhances portfolio analysis by incorporating size and ...

The tradeoff for higher returns is higher risk — right? A new paper argues that factor investing challenges the 50-year-old Capital Asset Pricing Model (CAPM) developed by William Sharpe, which ...

Capital Asset Pricing Model (CAPM): A model used to determine the theoretically appropriate required rate of return of an asset, taking into account its systematic risk relative to the market.

Factor investing essentially originated in the 1960s with the Capital Asset Pricing Model (CAPM), which presented that a stock's expected return is a function of its beta (β), or correlation to ...

This article offers an alternative proof of the capital asset pricing model (CAPM) when asset returns follow a multivariate elliptical distribution. Empirical studies continue to demonstrate the ...

We show that the external habit-formation model economy of Campbell and Cochrane (1999) can explain why the Capital Asset Pricing Model (CAPM) and its extensions are better approximate asset pricing ...