The CAPM remains widely used despite its reliance on a variety of assumptions. Used as a tool combined with other methods of evaluating securities, it can play an integral role in helping ...

Reviewed by Thomas Brock Fact checked by Suzanne Kvilhaug CAPM: An Overview Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other ...

We demonstrate that when these assumptions are relaxed, the empirical support for the CAPM is very strong. When human capital is also included in measuring wealth, the CAPM is able to explain 28% of ...