Capital Asset Pricing Model1 [Corporate Finance] Foundation of Finance Topics (5): Capital market equilibrium and the CAPM According to Portfolio Theory, by diversifying, investors can eliminate unsystematic risk (also known as diversifiable risk or specific risk) related to individual stocks, but not systematic risk (market risk, or the general perils of investing). The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets/stocks. Capital Market Equilib.. 2024. 1. 16. 이전 1 다음
