| title | aliases |
|---|---|
Capital Asset Pricing Model (CAPM) |
CAPM |
[!SUMMARY]+ CAPM is a model of the optimal investment portfolio and asserts that all investors will hold the same portfolio
CAPM advocates investing in assets from multiple "tiers" of risks. In other words, a portfolio should contain assets ranging from low [[Risk]] [[Government]] bonds to speculative assets as overall the risk will be balanced across the portfolio.
- Index:: [[_Finance]]
- Related:: [[Risk]], [[Diversification]], [[Investment banking]], [[Beta of a stock]], [[Security Market Line (SML)]]