But how do we make this analysis? Some investors rely on guesswork, while others examine past performance. But hold on! There's a logical model that can help you calculate the expected rate of return based on the risk involved. This model is known as the ‘Capital Asset Pricing Model.

Related Keywords

, Learn With , Capital Asset Pricing , Capital Asset Pricing Model , Risk Free Rate , Market Return , Free Rate , Systematic Risk , Stock Market , Stock Market Risk , Investing In Stock Market , Mcapm ,