Capital Asset Pricing Model CAPM

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=1j1lx6iG414

The capital asset pricing model (CAPM) is a formula that explores the relationship between risk and returns. • The video lecture begins with the concept of risk. Risk is the likelihood of a deviation from expectation. To get more risk from an investment, investors should be compensated with more returns. • CAPM deals with market risk, i.e. those that remain after diversification. How then will CAPM capture this relationship? What is beta and how does it fit in this picture? Can we then evaluate investments desirability with this relationship model? • #RiskandReturns, #Risk, #Beta, #MarketRisk

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