Capital Asset Pricing Model Provides Interesting Insight about Investor Expectations

The Capital Asset Pricing Model provides interesting insight about investor expectations. A core assumption in the theory is that the average person is risk averse. This means that he or she would like to get the highest possible return with the least amount of risk. For example, given the option between receiving $100 and flipping … Continue reading Capital Asset Pricing Model Provides Interesting Insight about Investor Expectations