Topical Terminology > Capital Asset Pricing Model (Capm)
Capital Asset Pricing Model (Capm)
For Capital Asset Pricing Model (Capm) we have terms and definitions in 2 topics. The topics are Finance and International Business.
Capital Asset Pricing Model (Capm) (Finance) 
An economic theory that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. The CAPM asserts that the only risk that is priced by rational investors is systematic risk, because that risk cannot be eliminated by diversification. The CAPM says that the expected return of a security or a portfolio is equal to the rate on a risk-free security plus a risk premium multiplied by the assets systematic risk. Theory was invented by William Sharpe (1964) and John Lintner (1965).
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Capital Asset Pricing Model (Capm) (International Business)
An asset pricing model that relates the required return on an asset to its systematic risk.
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