Definitions for

**"CAPM"****Related Terms:**Capital asset pricing model, Risk-free asset, Equity risk premium, Security market line, Navps, Roic, Expected return, Nav, Nta, Net assets, Net asset value per share, Tactical asset allocation, Net asset value, Rona, Capital appreciation, Risk premium, Roa, Investment risk, Raroc, Growth assets, Total return, Arbitrage pricing theory, Return on invested capital, Excess return, Systematic risk, Asset backing, Net worth, Net realisable value, Return on total assets, Net tangible assets, Asset turnover, Rate of return, Price/book ratio, Weighted average cost of capital, Capital growth, Market portfolio, Roe, Capital employed, Total asset turnover, Risk adjusted return on capital, Risk-adjusted return, Liquidation value, Goodwill, Return, Tangible net worth, Book value, Total rate of return, Return on equity, Price-to-book ratio, Capital market line

Capital Asset Pricing Model. An economic model for valuing stocks by relating...

Capital asset pricing model. Linear fit measuring the relative performance of a portfolio in comparison with a market index average.

Capital Asset Pricing Model. This model relates the required rate of return for any security with the risk for that security as measured by beta.

An economic model for valuing stocks by relative risk and expected return.

Capital Assets Pricing Model

Capital asset price model. The rate of return on any asset consists of two components - the pure time value of money and the risk premium reflecting the sensitivity of the asset to changes in market returns. The beta value of an asset measures its sensitivity to general market movements.

Capital asset pricing model. A theoretical comparative risk model that relates risk and return.

See Capital Asset Pricing Model.

Capital asset pricing model. The equation for the security market line showing that the expected return on an asset is related to its systematic risk.

Abbreviation for Capital Asset Pricing Model.

The Capital Asset Pricing Model. An economic theory that was developed in the 1960's by William Sharpe based on Harry Markowitz's pioneering work on portfolio theory. Markowitz and Sharpe were jointly awarded the Nobel Prize for economics in 1990. The theory describes the relationship between risk and expected return and is used to price securities. According to CAPM, the expected return on a security is equal to the return on a risk-free security plus a premium for the market's risk, adjusted for the stock's Beta.

Capital Asset Pricing Model. a method of estimating the cost of equity capital of a company. The cost of equity capital is equal to the return of a risk-free investment plus a premium that reflects the risk of the company's equity.

Capital Asset Pricing Model. an equilibrium based asset pricing model developed independently by Sharpe, Lintner and Mossin. The simplest version states that assets are priced according to their relationship to the Market Portfolio of all risky assets determined by the securities beta

capital asset pricing model. A theory which predicts that the expected risk premium for an individual stock will be proportional to its beta, such that the expected risk premium on a stock 5 beta 3 the expected risk premium in the market. Risk premium is defined as the expected incremental return for making a risky investment rather than a safe one.

Capital Asset Pricing Model. A model in which the cost of capital for any stock or portfolio of stocks equals a risk-free rate plus a risk premium in proportion to the systematic risk of the stock or portfolio.

Capital Asset Pricing Model. A valuation model meant to describe the relationship between risk and return.

Capital asset pricing model. Capital Builder Account (CBA) Capital expenditures

Capital asset pricing model. A model of the relationship between expected risk and expected return. The theory that investors demand higher returns for higher risks.

Capital Asset Pricing Model. A model for describing the way prices of individual assets are determined in an efficient market, based on their relative riskiness in comparison with the return on risk-free assets. According to this model, prices are determined in such a way that risk premiums are proportional to systematic risk as measured by the beta coefficient. As such, the CAPM provides an explicit expression of the expected returns for all assets. Basically, the CAPM holds that if investors are risk averse, high- risk stocks must have higher expected returns than low- risk stocks.

Capital Asset Pricing Model. A widely used model that establishes how risky securities ought to be priced in financial markets. It distinguishes between systematic risk and unsystematic risk, and postulates that a security's expected returns ought to increase linearly with systematic risk. The line that expresses this relationship is called the security-market line, and systematic risk is measured by a security's beta coefficient.

Capital Asset Pricing Model. A model that relates the expected return on an asset to the expected return on the market portfolio.

Capital asset pricing model. An economic theory that describes the relationship between risk and expected return, and serves as a model for the pricing of risky securities. The CAPM asserts that the only risk that is priced by rational investors is systematic risk, because that risk cannot be eliminated by diversification. The CAPM says that the expected return of a security or a portfolio is equal to the rate on a risk free security plus a risk premium.

Capital Asset Pricing Model. A valuation model which states that the expected return on an asset is equal to the risk-free interest rate plus a 'risk premium' that is determined by the asset's systematic risk (beta). A single factor model.

Capital Asset Pricing Model. Capital Asset Pricing Model determines the cost of equity of a quoted company. This cost depends on the risk free interest rate, the return of a market venturelist and the securityâ€(tm)s volatility, compared to the overall market.

Capital Asset Pricing Model. a model in which the cost of capital for any security or portfolio of securities equals a risk-free rate plus a risk premium that is proportionate to the systematic risk of the security or portfolio.

Capital asset pricing model. Model of the relationship between systematic risk and expected return. It is a widely used basis for valuing financial assets.

Capital Asset Pricing Model. A theory that concludes that investors are rewarded for taking systematic risk, but not for taking nonsystematic risk.

A method of valuing securities or investments: a discounted cash flow (DCF) using on a risk adjusted discount rate.... more on CAPM

Capital Asset Pricing Model. CAPM is a valuation technique that uses the weighted average cost of capital (WACC) to discount future estimated cash flows of the company.

Capital Asset Pricing Model. An economic model for valuing securities Mathematical model that enables investors to determine the expected return from a risky security. The model uses Beta as the main measure of risk

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Computer-Aided Production Management (U.K.)

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