The Capital Asset Pricing Model describes the relationship between the expected return and the risk. Finally, it will draw the inference that the expected return on security has the same value as the risk-free return plus a risk premium. Check What is CAPM and How Does It Work below.
What is CAPM?
When it comes to the financial field, the CAPM refers to a model that focuses on determining an appropriate required rate of return of an asset. It also provides assistance in making decisions abou...