Theories & Models Flashcards
(1 cards)
1
Q
Capital Asset Pricing Model (CAPM)
A
A financial model that predicts investment’s rate of return using an investment’s sensitivity to non-diversifiable risk, which is measured by Beta
Capital Asset Pricing Model (CAPM)
A financial model that predicts investment’s rate of return using an investment’s sensitivity to non-diversifiable risk, which is measured by Beta