The Capital Asset Pricing Model
The capital asset pricing model (CAPM) is an influential paradigm in financial risk management. It formalizes mean-variance optimization of a risky portfolio given the presence of a risk-free investment such as short-term government bonds. The CAPM defines the price of financial assets according to...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-09-01
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| Series: | Encyclopedia |
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| Online Access: | https://www.mdpi.com/2673-8392/1/3/70 |