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  • Aelationabp: Capital Fidng Teuatie

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    Ragachandra Lekha
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    1) The CAPM (Capital Asset Pricing Model) establishes the relationship between risk and expected return of assets. 2) It states that the expected return of a security or portfolio equals the rate of return of a risk-free asset plus a risk premium. 3) The risk premium depends on the security's beta, which measures how volatile the security is relative to the overall market. Stocks with higher beta are expected to offer higher returns.

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    CAPM

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    1) The CAPM (Capital Asset Pricing Model) establishes the relationship between risk and expected return of assets. 2) It states that the expected return of a security or portfolio equals the rate of return of a risk-free asset plus a risk premium. 3) The risk premium depends on the security's beta, which measures how volatile the security is relative to the overall market. Stocks with higher beta are expected to offer higher returns.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    16 views5 pages

    Aelationabp: Capital Fidng Teuatie

    Uploaded by

    Ragachandra Lekha
    1) The CAPM (Capital Asset Pricing Model) establishes the relationship between risk and expected return of assets. 2) It states that the expected return of a security or portfolio equals the rate of return of a risk-free asset plus a risk premium. 3) The risk premium depends on the security's beta, which measures how volatile the security is relative to the overall market. Stocks with higher beta are expected to offer higher returns.

    Copyright:

    © All Rights Reserved
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    of 5

    Capital Asnet fidng Model

    CAPM

    behouu teuatie vrk


    It establih te Aelationabp
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