The Capital Asset Pricing Model (CAPM) posits that investors should be compensated for two main components: the time value of money, represented by the risk-free rate, and the risk premium, based on market risk and the investment’s beta.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (4)

• market risk concept
• investor concept
• risk-free rate concept
• risk premium concept