Capital asset pricing model, Management Theories

Assignment Help:

Capital Asset Pricing Model (CAPM):

Part of the huge capital market assumption that attempts to quantify investment risk. Under CAPM, systematic risk is calculated by a statistical factor labeled beta, which is the mathematical term of the relationship among the return on personality privacy and the return on the market as a whole. The market return is common by a market index, such as the Dow Jones Industrial Average or the Standard  & Poor's 500 compound Stock Price directory. In other words, beta measures the volatility of a given privacy beside market averages. The CAPM states that the value of a financial privacy depends only on the statistical relationship among the privacy and the cost of all privacies that trade in the financial markets. Investors that purchase risky assets get an expected return that is advanced than an investment in risk-free assets.

 


Related Discussions:- Capital asset pricing model

Change management, How to describe 4 change management and kotters change m...

How to describe 4 change management and kotters change management

Linear planning programming, a paper mill produce two grades of paper viz....

a paper mill produce two grades of paper viz., x and y. because of raw material restriction,it cannot produce more than 400 tons of grade x and 300 tons of grade y paper in a week

Managerial functions -Directing , Directing  Directing is the manageri...

Directing  Directing is the managerial function concerned with the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and

money on food, On average, people in a globe spend 8 - 10% of their money ...

On average, people in a globe spend 8 - 10% of their money on food.  Write a script that will prompt the peoples for an annual income.  It will then print the range that would typi

Explain the judicial decisions law, Explain the judicial decisions  law ...

Explain the judicial decisions  law The next source of international law is the judicial decisions whereby, different decisions by various judges are used in order to understan

Advantages of panel data, Advantages of Panel Data: a. Such data enable ...

Advantages of Panel Data: a. Such data enable the researcher to undertake detailed analysis. For example one can determine the characteristics of individuals who have changed br

Outsourcing , It is about Outsourcing in general not for specific company. ...

It is about Outsourcing in general not for specific company. Who are the stakeholders involved and what is the relationship between the stakeholders? (Don’t just provide a list – e

Process, implementation of management in textile firm

implementation of management in textile firm

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd