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

Info tech management, assess the IT processes within the organization of yo...

assess the IT processes within the organization of your choice, how?

Hr, HR Policies

HR Policies

Marketing, #best books for marketing

#best books for marketing

What is the hawthorne studies, What were the Hawthorne studies? What effect...

What were the Hawthorne studies? What effect did they have on the Management practices?

Managerial functions - organising , Organising Organising is the pro...

Organising Organising is the process of prescribing formal relationships among people and resources (i.e.,personnel, raw materials, tools, capital, etc.) to accomplish the g

Limitations of panel data, Limitations of Panel Data: a. Panel data ma...

Limitations of Panel Data: a. Panel data may not be representative  samples since panel  members  are expected to put  in some effort in furnishing data  to the research organ

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