Mises Wire
Author:
Heiko de Boer
Online Publish Date:
The capital asset pricing model (CAPM) is an important investment model that describes how investors expect to be compensated for the time value of money and risk. The more risk you take, the more you want to be compensated. The formula is expressed as follows: (A) Re = Rf + Beta * ( Rm – Rf ), where Rf is risk-free return, Rm is the market