Statements (33)
| Predicate | Object |
|---|---|
| gptkbp:instanceOf |
gptkb:financial_technology
|
| gptkbp:abbreviation |
gptkb:CAPM
|
| gptkbp:assumes |
no transaction costs
homogeneous expectations investors are rational investors can borrow and lend at risk-free rate markets are efficient single period investment |
| gptkbp:category |
financial economics
investment theory |
| gptkbp:component |
beta
expected return market return market risk premium risk-free rate |
| gptkbp:criticizedFor |
unrealistic assumptions
empirical weaknesses |
| gptkbp:describes |
relationship between risk and expected return
|
| gptkbp:field |
economics
finance |
| gptkbp:form |
E(Ri) = Rf + βi(E(Rm) - Rf)
|
| https://www.w3.org/2000/01/rdf-schema#label |
Capital Asset Pricing Model
|
| gptkbp:introduced |
gptkb:William_F._Sharpe
gptkb:Jan_Mossin gptkb:John_Lintner |
| gptkbp:introducedIn |
1960s
|
| gptkbp:relatedTo |
gptkb:Arbitrage_Pricing_Theory
gptkb:Fama-French_Three-Factor_Model |
| gptkbp:usedFor |
portfolio management
asset pricing cost of capital estimation |
| gptkbp:bfsParent |
gptkb:William_Sharpe
|
| gptkbp:bfsLayer |
5
|