Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. The capital asset pricing model (CAPM) and the ...

CAPM calculates expected stock returns using the risk-free rate, stock beta, and market return. The riskier the stock, the higher the return investors should demand. CAPM aids in investment analysis ...

One of the key insights of the CAPM is that it answers an important investment question: "What is the expected return if I purchase security XYZ?" The assumption that Sharpe built into the model is ...

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. The capital asset pricing model ...

Rachael has a Bachelor’s degree in mass media from Wilson College, Mumbai and a Master’s degree in English from Pune University. The Capital Asset Pricing Model (CAPM) is a foundational concept in ...

Fadi Zaher leads a team of specialists in index, multi-asset, and factor-based investing at Legal & General Investment Management in London. Erika Rasure is globally-recognized as a leading consumer ...

The capital asset pricing model has been widely used for many years by the global financial services industry to try and predict the returns you should expect from a stock. If a stock offers a return ...

Mathematical models are a way to attempt to predict the probable outcome of a complex situation. From climate, stock market and physics models, you can use mathematical formulas to determine a range ...