Explain in detail the components of capm

Reference no: EM131552531

Discussion

The capital asset pricing model (CAPM) relates the risk return trade-off of individual assets to market returns so that a security has a risk-free rate of return and a premium for risk.

• Explain in detail the components of CAPM.
• Be sure to include the formula and an explanation of beta.

Reference no: EM131552531

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