The widely used capital asset pricing model (CAPM)—when put into practice—has both pros and cons. The capital asset pricing model (CAPM) is a finance theory that establishes a linear ...

Although at the outset, it might sound as alien as a foreign language, taking some time to understand the theory and actually putting the theory into practice can help familiarize investors with ...

Arbitrage is the practice of simultaneously buying ... the correlation between risk and return. Unlike the capital asset pricing model, arbitrage pricing theory does not assume that investors ...

Black, Fischer, Michael C. Jensen, and Myron Scholes. "The Capital Asset Pricing Model: Some Empirical Tests." In Studies in the Theory of Capital Markets, edited by ...