The Capital Asset Pricing Model is a pricing model that describes the relationship between expected return and risk. The CAPM helps determine if investments are worth the risk.

Haim Levy has written:

'Relative effectiveness of efficiency criteria for portfolio selection' -- subject(s): Investments, Mathematical models, Stocks

'Investment and portfolio analysis' -- subject(s): Investment analysis, Portfolio management

'Research in Finance'

'The capital asset pricing model'

'The capital asset pricing model in the 21st century' -- subject(s): Capital assets pricing model, Capital asset pricing model

In the context of the Capital Asset Pricing Model how would you define beta? How are beta determined and where can they be obtained? What are the limitations of beta?

The model's message is that an investmentÕs risk premium varies in direct proportion to its volatility compared to the rest of an efficient, competitive market. Capital Asset Pricing Model is a numerical model that explains the connection between risk and return in a rational equilibrium market.

The capital asset pricing model (CAPM) is the dominant model for estimating the cost of equity.