Find Job or Recruit Staff: 093 682 682 | 078 868 848 | info@pp-hr.com | Recruitment Service

Capital Asset Pricing Model (CAPM)

Capital Asset Pricing Model (CAPM)


The capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, and it is related with a well-diversified portfolio.

The CAPM formula is:

ra = rrf + Ba (rm-rrf)

where:

rrf = the rate of return for a risk-free security

rm = the broad market’s expected rate of return

Ba = beta of the asset

The model takes into account the asset’s sensitivity to non-diversifiable risk (also known as systematic risk or market risk), often represented by the quantity beta (β) in the financial industry, as well as the expected return of the market and the expected return of a theoretical risk-free asset.

Leave your thoughts

Find Jobs Here !

Phnom Penh HR Service

1. Recruitment Service
2. Cambodia Tax Consulting
3. Accounting Service & System
4. Outsourcing Service
5. Internal Auditing Service
6. HR Consulting
7. Practical Job Training
Services by ACCA | CPA,Tax Agent
Diploma in Cambodia Tax,and MBA
**Contact Us Via 093 682 682
078 868 848| info@pp-hr.com
SHARE