CAPM

Capital Asset Pricing Model. An Economic model for valuing stocks by relating Risk and expected return. Based on the idea that investors Demand additional Expected return (called the Risk premium) if asked to Accept additional risk.

Related Terms: 12 Asset, Ask, Accept, Base, Call, Demand, Economic, Expected return, Mode, Return, Risk, Risk premium

Other Related Pages: Category: Stocks Starting With: C

Additional Related Terms: 10-K, 19c3 stock, Active asset, Allowance for depreciation, Asset, Asset/equity ratio, Average accounting return, Asset management account, American Stock Exchange, Amortization of premium