Capital Asset Pricing Model (CAPM)

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The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between expected return and risk of investing in a security. It shows that the expected return on a security is equal to the risk-free return plus a risk premium, which is based on the beta of that security.

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Great explanation! helped me understand the concept, thanks.

tentimetex
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How can you do a video on the CAPM and not even mention the formula !?!?!?!?! Viewers, do not stop here. You still do not understand the CAPM!

gregbarry