Capital asset pricing model (CAPM)

Capital Asset Pricing Model (CAPM),

What is The Meaning of Capital Asset Pricing Model (CAPM)?

• An asset price model that describes the relationship between expected risk and expected return on tradable assets. The CAPM states that the barrier of regression equation between asset return and regulated factor return is 0, but does not necessarily consider systematic risk as the only source.

• The Capital Asset Price Model (CAPM) describes the relationship between managed risk and expected return on assets, especially stocks. Given the risk of the asset and the cost of capital, CAPM is widely used in finance to estimate the value of risk and to achieve the expected return on an asset.

• The latest model for the relationship between expected risk and expected return.

• A model that shows the relationship between expected risk and expected return on investment, based on the accepted theory that the higher the risk associated with an investment, the higher the desired return.

Literal Meanings of Capital Asset Pricing Model (CAPM)

Capital:

Meanings of Capital:

1. The most important city in a country or region, usually the seat of government and administrative center. Places, more than others, are associated with certain activities or products.

2. Assets in the form of cash or other assets that belong to or are available to a person or organization or have been provided for a specific purpose, e.g. B. Starting a business or investing.

3. Characters of any size and shape that start sentences and names.

4. ■■■■■ penalty (for a crime or charge)

5. (A letter of the alphabet) Large and shaped to start sentences and nouns.

6. It is used to express approval, satisfaction or happiness.

7. The second part, usually wide, above the column or column.

Sentences of Capital

1. Huge returns on invested capital.

2. Write the name in capital letters

3. Murder is a great crime

4. Suppose the work can be published, my name will appear along with some names with a large N.

5. The column contains uppercase letters.

Synonyms of Capital

first city, deep pockets, finances, assets, block capital, block, upper-case, centre of administration, resources, funds, most important city, money, wealth, upper-case letter, capital letter, stock, seat of government, the wherewithal, finance, the means

Asset:

Meanings of Asset:

1. A useful or valuable thing, a person or a quality.

Sentences of Asset

1. Instant anxiety is your biggest asset.

Synonyms of Asset

good point, attractive feature, virtue, beauty, value, benefit, attraction, advantage, help, talent, merit, strong suit, long suit, forte, strong point, recommendation, selling point, blessing, boon, resource, bonus, gift, aid, strength

Pricing:

Meanings of Pricing:

1. Determine the amount needed (anything offered for sale)

2. Discover or quote (sell something).

3. The amount of money that is expected, needed, or given as a payment for something.

4. Harmful experiences or actions that are experienced or performed as a condition for achieving a goal.

Sentences of Pricing

1. The watch costs 55.

2. He thought it was a simple trash can, although many people saw the value of what he had been getting for many years.

3. Land can be sold at a higher price.

4. The price of success is a day of debate.

Synonyms of Pricing

total, set the price of, estimate, fare, forfeiture, fee, charge, selling price, toll, forfeit, payment, evaluate, fix the price of, consequence, amount, appraise, cost, figure, sacrifice, put a price on

Model:

Meanings of Model:

1. Fashion or shape (a three-dimensional shape or object) made of a viable material such as clay or wax.

2. Use as an example to follow or imitate (system, method, etc.).

3. Create simple descriptions (systems or processes), especially math, to make calculations and predictions easier.

4. Display (clothes) when used.

5. The three-dimensional representation of the proposed person, object, or structure, usually on a smaller scale than the original.

6. A system or object to be used, for example, to be tracked or copied.

7. A description of a system or process to facilitate simple, mostly mathematical, calculation and prediction.

8. Someone who is put on to show off while wearing clothes.

9. Specific product designs or versions.

Sentences of Model

1. Use frosting for home models.

2. The research method is based on previous work.

3. A computer program that can model smoking habits.

4. The dress is made by a celebrity.

5. Model of St. Paul's Cathedral

6. The law served as a model for dozens of laws prohibiting non-biodegradable plastic products.

7. Statistical models predict the survival rate of endangered species.

Synonyms of Model

prototype, fashion model, version, sort, dummy, kind, representation, configuration, archetype, reproduction, mock-up, lookalike, variety, style, imitation, copy, double, design, type, mark, duplicate, mannequin, replica, supermodel, stereotype

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