Expected return-beta relationship

Expected return-beta relationship

Implication of the CAPM that security risk premiums will be proportional to beta.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Expected Return-Beta Relationship

In the Capital Asset Pricing Model, a statement that the expected rate of return on an investment is directly proportional to its risk premium, as signified by its beta.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved