Posts
LeoGlossary: Capital Asset Pricing Model (CAPM)
25
@leoglossary
··
0 views
1 min read
This is a model that measures risk. It is defined in terms of an investment relative to the overall market. Thus, traders use this to formulate returns against the entire market as a whole. The latter is considered systemic risk. Beta is often used against the risk free rate (often TBill) along with equity premium.
General:
Posted Using LeoFinance Beta