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English definition of “capital asset pricing model”

capital asset pricing model

noun [C]
 
 
( abbreviation CAPM)
FINANCE a method of calculating the value of an investment using the relationship between risk and the amount of profit that an investor expects to make: The article examines the capital asset pricing model for the Greek stock market using weekly stock returns from 100 companies listed on the Athens stock exchange.
(Definition of capital asset pricing model from the Cambridge Business English Dictionary © Cambridge University Press)
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