Capital asset pricing model, Management Theories

Capital Asset Pricing Model (CAPM):

Part of the huge capital market assumption that attempts to quantify investment risk. Under CAPM, systematic risk is calculated by a statistical factor labeled beta, which is the mathematical term of the relationship among the return on personality privacy and the return on the market as a whole. The market return is common by a market index, such as the Dow Jones Industrial Average or the Standard  & Poor's 500 compound Stock Price directory. In other words, beta measures the volatility of a given privacy beside market averages. The CAPM states that the value of a financial privacy depends only on the statistical relationship among the privacy and the cost of all privacies that trade in the financial markets. Investors that purchase risky assets get an expected return that is advanced than an investment in risk-free assets.

 

Posted Date: 10/15/2012 8:06:05 AM | Location : United States







Related Discussions:- Capital asset pricing model, Assignment Help, Ask Question on Capital asset pricing model, Get Answer, Expert's Help, Capital asset pricing model Discussions

Write discussion on Capital asset pricing model
Your posts are moderated
Related Questions

Matrix Str ucture An organizational structure building two lines of authority (for example: combining functional and departmental lines of organization).

1. Whom do you think Rajender will eat with? Why?

What is phylum coelentara

what is customer marketing & explain in brief with suitable diagram

Suppose that two national champions are active in the similar industry but in two neighbouring countries. Initially, neither firm is active in the other country. They every face th

what is rhopalium

explain why a partnership approach to purchasing is likely to be more beneficial than the more traditional approach for a medium sized manufacturing operation

Q. What is Le plan? In France All the business units will follow the centralized plan of the government. Such plans are prepare with the view of Maximization of national resour

what changes in culture are needed at the plaza inn