The acronym CAPM stands for:
A) Capital Asset Pricing Model.
B) Certain Arbitrage Pressure Model.
C) Current Arbitrage Prices Model.
D) Cumulative Asset Price Model.

Question

Quizplus · Accepted Answer

The acronym CAPM stands for Capital Asset Pricing Model, which is a model used to determine the theoretical appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified portfolio, given that asset's non-diversifiable risk.

The Acronym CAPM Stands For