What is “Capital Asset Pricing Model” ?

In finance, Capital Asset Pricing Model has been commonly used as a term that determines the price of risky securities and evaluates the bond between the risk and expected return. An equation is being used by investors to specifically determine the time value and risk of money that corresponds to their compensation.

On the other hand, an investor is more likely to spend money hoping that the initial investment will gain profits. The Capital Asset Pricing Model (CAPM) will now be responsible in determining these profits. Continue reading