Describe what the Capital Asset Pricing Model tells you to your father, who has never had a

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Describe what the Capital Asset Pricing Model tells you to your father, who has never had a course in finance. What is the key insight we gain from this model?
Capital Asset Pricing Model
The Capital Asset Pricing Model (CAPM) describes the relationship between systematic risk and expected return for assets, particularly stocks. The CAPM is a model for pricing an individual security or portfolio. For individual securities, we make use of the security market line (SML) and its...
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Financial Management Principles and Applications

ISBN: 978-0134417219

13th edition

Authors: Sheridan Titman, Arthur J. Keown, John H. Martin

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