Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. The capital asset pricing model ...

One of the key insights of the CAPM is that it answers an important investment question: "What is the expected return if I purchase security XYZ?" The assumption that Sharpe built into the model is ...

Factor investing involves using factor models like CAPM and APT to predict individual security returns based on macroeconomic or other factors. Factor investing is a formulaic method for forecasting ...

“Taking the Temperature of Health Care Valuations” (JofA, Oct.01, page 79) indicates the capital asset pricing model (CAPM) was used to derive the discount rate, which resulted in an “enterprise value ...

The tradeoff for higher returns is higher risk — right? A new paper argues that factor investing challenges the 50-year-old Capital Asset Pricing Model (CAPM) developed by William Sharpe, which ...

This is a preview. Log in through your library . Abstract We develop new tests of the capital asset pricing model that take account of and are valid under the assumption that the distribution ...

Timberland investments have long attracted interest as a distinct asset class due to their dual benefit of biological growth and market-driven returns. In recent decades, research has illuminated the ...

Rachael has a Bachelor’s degree in mass media from Wilson College, Mumbai and a Master’s degree in English from Pune University. The Capital Asset Pricing Model (CAPM) is a foundational concept in ...