capital-asset pricing model

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capital-asset pricing model (CAPM)

A mathematical model for securities pricing in which the relative riskiness of securities is combined with the return on risk-free assets. This model, which uses beta, the widely used measure of risk, has been criticized; nevertheless, it is considered a very important element of modern investment and portfolio theory. See also capital market line.

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Arbitrage Pricing Theory
Asset Pricing Model
Breeden, Douglas T.
Capital Asset Pricing Model

Capital Market Line
CAPM
CML
Equilibrium Market Price of Risk

Expected return on investment
Expected Return-Beta Relationship
Foreign Market Beta
Jensen index

Multifactor CAPM
Roll's Critique
Security Market Line
Two-Factor Model

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capital spending
capital stack
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capital structure
capital surplus
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capital-asset pricing model
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capitalization
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capitalization rate
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