The Capital Asset Pricing Model (CAPM) calculates the expected return of a stock using the risk-free rate, the market return, and the stock'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 (3)

• stocks concept
• risk-free rate concept
• expected return concept