CatalanoFact checked by Ryan EichlerKey TakeawaysCAPM estimates the expected returns of an asset based on its risk.CAPM helps finance professionals assess investment profitability.Beta, a key ...

Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other asset within the context of its intrinsic risk. Used primarily to analyze ...

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is generating ...

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 ...