Capital asset pricing model, Financial Management

Assignment Help:

Can you draw Capital asset pricing model with example and explain?????

Related Discussions:- Capital asset pricing model

Calculate amount to fund the endowment, On Completion of her introductory f...

On Completion of her introductory finance course, Kieran was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were weal

Define the term- franchise, Franchise (licensing) - Granting or licensi...

Franchise (licensing) - Granting or licensing of the right to use systems, expertise,brandsknow how etc. to another organisation, generally in return for a profit share

Functions of finance financial management, Q. Explain Functions of Finance ...

Q. Explain Functions of Finance Financial Management? Functions of Finance or else Financial Management: - The functions of Financial Management are: (1) Determining the Fin

Explain the marginal cost of capital schedule, What is a marginal cost of c...

What is a marginal cost of capital schedule (MCC)? Is the schedule all the time a horizontal line? Explain. The MCC schedule is a graphic depiction of the weighted average cost

Registered and unregistered bonds, On the basis of transferability, d...

On the basis of transferability, debentures can be classified as registered and unregistered debentures. Unregistered debentures (or bearer debentures) are freely

Define interbank currency trading worldwide use us dollar, Why does most in...

Why does most interbank currency trading worldwide involve the U.S. dollar? Answer: Trading in currencies worldwide is in opposition to a common currency which has international

Determine the cost, a) Social marketing is the use of normal marketing meth...

a) Social marketing is the use of normal marketing methods to achieve the benefits of social change, such as informing the public about the harm of under-age drinking, rather than

Operating cycle, applicability of an operating cycle in a vegetable growing...

applicability of an operating cycle in a vegetable growing business

State about the nick leeson and barings, Nick Leeson and Barings Leeson...

Nick Leeson and Barings Leeson was the trader who managed to bring about the collapse of Barings Bank in 1995. The main reason he was able to do this was because there was a ce

Distinguish between lease and hire purchase, Distinguish between Lease and ...

Distinguish between Lease and Hire Purchase. What are the circumstances in which each of the system of financing is better than other?

Atom 2/13/2013 4:35:27 AM Capital asset pricing model In finance, the capital asset pricing model (CAPM) is used to calculate a theoretically appropriate required rate of return of an asset, if that asset is to be included to an already well-diversified portfolio, provided that asset''s non-diversifiable risk. The model takes into account the asset''s compassion to non-diversifiable risk (also define as systematic risk or market risk), often presented by the quantity beta (β) in the financial industry, as well as the expected return of a theoretical risk-free asset and expected return of the market. The model was introduced by Jack Treynor (1961, 1962) William Sharpe (1964), Jan Mossin (1966) and John Lintner (1965a,b) independently, creating on the earlier work of Harry Markowitz on modern portfolio theory and diversification. Sharpe, Merton Miller and Markowitz jointly received the Nobel Memorial Prize in Economics for this role to the field of financial economics.

Atom

2/13/2013 4:35:27 AM

Capital asset pricing model

In finance, the capital asset pricing model (CAPM) is used to calculate a theoretically appropriate required rate of return of an asset, if that asset is to be included to an already well-diversified portfolio, provided that asset''s non-diversifiable risk. The model takes into account the asset''s compassion to non-diversifiable risk (also define as systematic risk or market risk), often presented by the quantity beta (β) in the financial industry, as well as the expected return of a theoretical risk-free asset and expected return of the market.

The model was introduced by Jack Treynor (1961, 1962) William Sharpe (1964), Jan Mossin (1966) and John Lintner (1965a,b) independently, creating on the earlier work of Harry Markowitz on modern portfolio theory and diversification. Sharpe, Merton Miller and Markowitz jointly received the Nobel Memorial Prize in Economics for this role to the field of financial economics.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages