Some topics include: banking sector efficiency, competitive behavior in the emerging African market, Nigerian banking consolidation and market structure, and the application of a capital asset pricing model to individual securities on the Ghana stock exchange.
What does CAPM stand for?
CAPM stands for Capital Asset Pricing Model
This definition appears very frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of CAPM
We have 49 other meanings of CAPM in our Acronym Attic
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Samples in periodicals archive:
In addition, the analysts used conservative values including a high market risk premium for the input parameters of the capital asset pricing model ("CAPM") and DCF models and added three extra risk premiums to the required rate of return derived from standard process to raise the required rate of return to a very high level of almost 20%.
With classes like "food chemistry" mixed in with accounting and finance courses, one minute McConnell was cooking an omelette, the next he was learning about net present value and the capital asset pricing model.
He examined the Myers-Cohn (1987) and the internal rate of return methods, and showed that in the absence of taxes, the application of each method produces a return on equity, period by period, which is consistent with the Sharpe's (1964) Capital Asset Pricing Model.
The main conclusions of the research by the EDHEC-Risk Institute are that, first, a cap-weighted stock market index is not the market portfolio of financial theory (the Capital Asset Pricing Model (CAPM) theory is often evoked to show that cap-weighted stock market indices are efficient portfolios and attractive investments).
Capital asset pricing models and their application The most popular model used by shareholders to assess risk and the expected rate of return on capital is the Capital Asset Pricing Model (CAPM).
Finance textbooks are replete with theories like the Modern Portfolio Theory and the Capital Asset Pricing Model that have been built on this (very shaky) foundation.
The efficient market hypothesis told us that prices are always right because they reflect all known information; the capital asset pricing model told us that we could diversify away company risk and achieve optimal systematic risk; and the Black-Scholes formula told us that we could then virtually eliminate systematic risk through options or portfolio insurance--shorting the market as it falls, thereby escaping loss.