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According to computer scientist Eric Brewer of the University of California, Berkeley, the theorem first appeared in autumn 1998. [9] It was published as the CAP principle in 1999 [10] and presented as a conjecture by Brewer at the 2000 Symposium on Principles of Distributed Computing (PODC). [11]
An estimation of the CAPM and the security market line (purple) for the Dow Jones Industrial Average over 3 years for monthly data. In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio.
Mean-variance efficiency of the market portfolio is equivalent to the CAPM equation holding. This statement is a mathematical fact, requiring no model assumptions. Given a proxy for the market portfolio, testing the CAPM equation is equivalent to testing mean-variance efficiency of the portfolio.
Alternatively, the method can be used to value the company based on the value of total invested capital. In each case, the differences lie in the choice of the income stream and discount rate. For example, the net cash flow to total invested capital and WACC are appropriate when valuing a company based on the market value of all invested ...
WACC is the weighted average cost of capital, combining the cost of equity and the after-tax cost of debt; t is the time period; n is the number of time periods to "maturity" or exit; g is the sustainable growth rate at that point
In database systems, consistency (or correctness) refers to the requirement that any given database transaction must change affected data only in allowed ways. Any data written to the database must be valid according to all defined rules, including constraints, cascades, triggers, and any combination thereof. This does not guarantee correctness ...
In the field of relational database design, normalization is a systematic way of ensuring that a database structure is suitable for general-purpose querying and free of certain undesirable characteristics—insertion, update, and deletion anomalies that could lead to loss of data integrity.
The capital asset pricing model (CAPM) predicts a positive and linear relation between the systematic risk exposure of a security (its beta) and its expected future return. However, the low-volatility anomaly falsifies this prediction of the CAPM by showing that higher beta stocks have historically underperformed lower beta stocks. [ 1 ]