The Capital Asset Pricing Model (CAPM) assumes that all investors share identical expectations regarding future returns and risks, markets are efficient, and risk is adequately captured by beta while ignoring unsystematic risk.

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 (2)

• investor concept
• unsystematic risk concept