The Capital Assets Pricing Model
{"Image DocumentName": "The Capital Assets Pricing Model", "Image ImageDescription": "LAN-ZWB ZWB. The Capital Assets Pricing Model. The CAPM postulates that the expected rate of return on a company\u2019s stock equals the risk-free rate plus the security\u2019s beta times the market risk premium: Expected return. Percent. E[Ri] = rf + Bi (E[Rm] \u2013 rf) To estimate a stock\u2019s expected return, you need to measure three inputs: The risk-free rate. The market risk premium. The stock\u2019s beta. Beta (systematic risk)", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}