This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: required by an investor given the investment’s risk . Required rate of return This linear relationship between risk and required return is known as the Capital Asset Pricing Model (CAPM). Required rate of return k j = k rf + j *(k m- k rf ) k j : the Required Return on security j...
View Full Document
This note was uploaded on 11/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.
- Summer '11