The capital asset pricing model (CAPM) is a financial model used to determine a security’s expected return considering its associated risk. Developed in the 1960s, CAPM has become an essential tool in ...

Learn how the International Capital Asset Pricing Model (ICAPM) accounts for global market factors and currency risks to calculate expected asset returns.

A group of our advisors attended a conference this past fall sponsored by Dimensional Fund Advisors. In his talk, "Risk Dimensions of the Market," Eugene F. Fama reviewed the latest data on the ...

Master calculating cost of equity in Excel using CAPM. Discover step-by-step guidance on market return, risk-free rate, and ...

High inflation and expensive equities lead to a negative risk-return relationship and shrink the equity premium to zero. Given today’s market dynamics, investors should avoid high-volatility stocks or ...

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff. The capital asset pricing model ...