enow.com Web Search

Search results

  1. Results from the WOW.Com Content Network
  2. What is the Capital Asset Pricing Model (CAPM)? - AOL

    www.aol.com/finance/capital-asset-pricing-model...

    For example, the most common use is to determine if a stock’s current value is in alignment with its expected return. This helps investors determine if the stock is overvalued or undervalued.

  3. Capital asset pricing model - Wikipedia

    en.wikipedia.org/wiki/Capital_asset_pricing_model

    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.

  4. Multiple factor models - Wikipedia

    en.wikipedia.org/wiki/Multiple_factor_models

    If b(t)=0 then the factor return in that period is drawn from the normal distribution and if b(t)=1 it drawn from the jump distribution. Torre found that simultaneous jumps occur in factors. Accordingly, in the multivariate case it is necessary to introduce a multivariate shock vector w(i,t) where w(i,t)=0 if the multivariate mixing variable b ...

  5. Stock valuation - Wikipedia

    en.wikipedia.org/wiki/Stock_valuation

    Stock valuation is the method of calculating theoretical values of companies and their stocks.The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the ...

  6. Business valuation - Wikipedia

    en.wikipedia.org/wiki/Business_valuation

    The capital asset pricing model (CAPM) provides one method of determining a discount rate in business valuation. The CAPM originated from the Nobel Prize-winning studies of Harry Markowitz, James Tobin, and William Sharpe. The method derives the discount rate by adding risk premium to the risk-free rate.

  7. Consumption-based capital asset pricing model - Wikipedia

    en.wikipedia.org/wiki/Consumption-based_capital...

    The consumption-based capital asset pricing model (CCAPM) is a model of the determination of expected (i.e. required) return on an investment. [1] The foundations of this concept were laid by the research of Robert Lucas (1978) and Douglas Breeden (1979). [2] The model is a generalization of the capital asset pricing model (CAPM). While the ...

  8. Roll's critique - Wikipedia

    en.wikipedia.org/wiki/Roll's_critique

    Roll's critique is a famous analysis of the validity of empirical tests of the capital asset pricing model (CAPM) by Richard Roll. It concerns methods to formally test the statement of the CAPM, the equation = + [()].

  9. AOL Mail

    mail.aol.com/?rp=webmail-std/en-us/basic

    Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!