Remove Marketability Remove Risk Premium Remove Systematic Risk Remove Weighted Average Cost of Capital
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What is the Capital Asset Pricing Model (CAPM)?

Andrew Stolz

It helps an investor understand what to expect to earn in relation to the risk-free rate and the market return. CAPM assumes that the minimum a rational investor would earn is the risk-free rate by buying the risk-free asset. What Impacts the Capital Asset Pricing Model? The Capital Asset Pricing Model in Practice.