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Tag Archives: Capital asset pricing model

Capital Asset Pricing Model

Capital asset pricing model (CAPM) is a very popular and effective pricing model used to calculate most  suitable required rate of return of an investment.It was proposed by the Jack Trevnor in the year 1962.This model calculates the required rate of return keeping in mind the sensitivity of the investment with respect to the different types of ,market risks.These risks are represented by the beta …

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