Capital Asset Pricing Model
The capital asset pricing model is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.
The expected return equals the risk\[Hyphen]free interest rate plus the beta coefficient times the difference between the return on market and the risk\[Hyphen]free interest rate.
Examples
Get the resource:
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Get the formula:
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Use some values:
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External Links
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