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

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

Human resource management, assignment on recruitment and selection for secr...

assignment on recruitment and selection for secretary for surance campony

Protozoa, phylum protozoa general Characteristics, structure and Classifica...

phylum protozoa general Characteristics, structure and Classification

Supply Chain Strategy : HG Ceramic Case Study, Can u do a case study on Sup...

Can u do a case study on Supply Chain Strategy subject ?

Contingency approach, Contingency Approach:   Industrial behavior rel...

Contingency Approach:   Industrial behavior relies on a contingency approach to management in both theory and practice. Two people can act another way in the same condition,

Information systems management, Do we really need a change in the way the I...

Do we really need a change in the way the IS function is structured? Are the necessary changes just minor modifications to accommodate normal growth and computer usage?

Leadership style and affect on performance , #questiwhether leadership st...

#questiwhether leadership style can impact positively on the performance of an organization? And to know the arguments for and against this proposal? Plus providing clear eviden

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