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Topic: CAPM

Related Topics

Modern portfolio theory

Capital asset pricing model

Systematic risk

Beta coefficient

Harry Markowitz

William Forsyth Sharpe

Composite number

Tjalling Koopmans

Hot hatch

Sensitivity

Luohu

MMORPG

Warren Harding

Royal Brunei Airlines

Earthworm

	Capital asset pricing model - Wikipedia, the free encyclopedia
		The CAPM formula takes into account the asset's sensitivity to non-diversifiable risk (also known as systematic risk or market risk), in a number often referred to as beta (β) in the financial industry, as well as the expected return of the market and the expected return of a theoretical risk-free asset.
		The CAPM assumes that the risk-return profile of a portfolio can be optimized - an optimal portfolio displays the lowest possible level of risk for its level of return.
		Unfortunately, it has been shown that this substitution is not innocuous and can lead to false inferences as to the validity of the CAPM, and it has been said that due to the inobservability of the true market portfolio, the CAPM might not be empirically testable.
	en.wikipedia.org /wiki/Capital_asset_pricing_model (1607 words)

	CAPM - Capital Asset Pricing Model
		CAPM is based on the idea that investors demand additional expected return (called the risk premium) if they are asked to accept additional risk.
		CAPM was introduced by Treynor ('61), Sharpe ('64) and Lintner ('65).
		A consequence of CAPM thinking is that it implies that investing in individual stocks is useless, because one can duplicate the reward and risk characteristics of any security just by using the right mix of cash with the appropriate asset class.
	www.12manage.com /methods_capm.html (752 words)

	Capital Asset Pricing Model (CAPM)
		CAPM extended Harry Markowitz's portfolio theory to introduce the notions of systematic and specific risk.
		According to CAPM, the expected return of a stock equals the risk-free rate plus the portfolio's beta multiplied by the expected excess return of the market portfolio.
		We call CAPM a "capital asset pricing model" because, given a beta and an expected return for an asset, investors will bid its current price up or down, adjusting that expected return so that it satisfies formula [1].
	www.riskglossary.com /articles/capital_asset_pricing_model.htm (765 words)

	Certified Associate in Project Management Overview
		The CAPM is designed for project team members and entry-level project managers, as well as qualified undergraduate and graduate students who want a credential to recognize their value to project team performance.
		A CAPM Credential can benefit professionals from all disciplines by demonstrating clear direction to their work and by gaining knowledge of project management processes and terminology.
		CAPM candidates must first meet specific educational and project management related experience requirements and then pass a comprehensive 150 question computer-based examination.
	www.pmi.org /info/PDC_CAPM.asp (182 words)

	WWWFinance - Asset Pricing and Risk Management: Campbell R. Harvey
		The CAPM implies that the alpha is zero.
		The null hypothesis is (the CAPM holds) is that the intercept is equal to zero.
		However, the CAPM is a benchmark that is often used in risk analysis.
	www.duke.edu /~charvey/Classes/ba350/riskman/riskman.htm (3012 words)

	The risk and return relationship part 2: CAPM (Site not responding. Last check: 2007-10-20)
		The CAPM contends that the systematic risk-return relationship is positive (the higher the risk the higher the return) and linear.
		If the CAPM is a realistic model (that is, it correctly reflects the risk-return relationship) and the stock market is efficient (at least weak and semi-strong), then the alpha values reflect a temporary abnormal return.
		CAPM is a one period model, while most investment projects tend to be over a number of years.
	www.accaglobal.com /publications/studentaccountant/1144332 (3507 words)

	Capital asset pricing model - Encyclopedia, History, Geography and Biography
		The capital asset pricing model (CAPM) is used in finance to determine a theoretically appropriate price of an asset such as a security.
		The formula takes into account the asset's sensitivity to non-diversifiable risk (also known as systematic risk or market risk), in a number often referred to as beta (β) in the financial industry, as well as the expected return of the market and the expected return of a theoretical risk-free asset.
		Once the expected return, $E(r_i)$ , is calculated using CAPM, the future cash flows of the asset can be discounted to their present value using this rate to establish the correct price for the asset.
	www.arikah.net /encyclopedia/Capital_Asset_Pricing_Model (1639 words)

	Cost Analysis — CAPM Portal (Site not responding. Last check: 2007-10-20)
		The amount of time it will take CAPM to fully process a request will depend on the location in the stacks of the requested item and the length of the document to be scanned and whether the document has been scanned previously.
		If the CAPM system is removed MSEL either will have to invest time and resources to remove the spaces, or it will have to absorb the annual costs associated with the loss of storage.
		If CAPM is terminated after five years of service, funds allocated to replacement PCs and a replacement scanner (recall that these items are expected to be replaced in year 5) likely are recoverable costs.
	ldp.library.jhu.edu /projects/capm/documents/cost_analysis.html (6944 words)

	Wilmott Forums - CAPM and sector dependence (Site not responding. Last check: 2007-10-20)
		One common misunderstanding of CAPM is that people think it's a one factor model in the sense that all inter-correlations of stocks are given by their correlations with the market as a whole.
		Actually, CAPM allows for the residual "specific" risks to be correlated, it's just that you aren't compensated for this risk in any way.
		As htmlballsup (whatever that name means) mentioned, CAPM and APT are both special cases of linear factor models that make different assumptions about the factors, residuals, and the resulting market price of systematic risk.
	www.wilmott.com /messageview.cfm?catid=3&threadid=27375 (1376 words)

	[No title]
		CAPM Program CAPM projects are capital outlay projects that utilize capital preventive maintenance rehabilitation strategies to preserve the existing pavement structural section in a "safe and usable condition" as defined in the Streets and Highway Code (Section 27).
		The CAPM pavement management strategy that is selected and utilized to maintain and preserve the existing pavement structural section must be appropriate for the amount of pavement deterioration that is observed.
		CAPM projects should normally be designed on the basis of current average daily traffic (ADT) and current peak period design hourly volume (DHV) to extend the structural section service life for a minimum of 5 years.
	www.dot.ca.gov /hq/oppd/pdpm/apdx_word/apdx-h.doc (2612 words)

	Home page of CAPM (Site not responding. Last check: 2007-10-20)
		CAPM, is a department of the Veterinary Research Institute in Brno, Czech Republic.
		With the permission obtained from the State Veterinary Administration, CAPM is licensed to import and export cultures of microorganisms.
		CAPM is the Reference Laboratory of the State Veterinary Administration of the Czech Republic.
	www.vri.cz /labs/patogen (263 words)

	Capital Asset Pricing Model
		CAPM is used as a model for the pricing of risky assets.
		The CAPM model provides a means with which the future cash flows of an asset can be discounted.
		CAPM is attributed to William Sharpe, who shared in the Nobel Prize for Economics for his work.
	www.quanthome.com /Quantitative-Finance/Articles/Capital-Asset-Pricing-Model (402 words)

	capital asset pricing model (CAPM)
		Unfortunately, The CAPM is more difficult to implement in practice than the binomial option pricing model or the Black-Scholes formula because to price an asset it requires measurement of the asset's expected return and its beta.
		The CAPM asks what is the value of an asset (or derivative) relative to the return of the market portfolio.
		Because of this, the option models are often referred to as "relative" valuation models, while the CAPM is considered an "absolute" valuation model.
	www.in-the-money.com /glossarynet/capital_.htm (307 words)

	Revisiting the Capital Asset Pricing Model
		In 1990, Sharpe's role in developing the CAPM was recognized by the Nobel Prize committee.
		The CAPM was and is a theory of equilibrium.
		The CAPM says no if factor three does badly in bad times, the expected return for exposure to that factor ought to be high.
	www.stanford.edu /~wfsharpe/art/djam/djam.htm (3490 words)

	Comprehensive Access to Printed Materials - Proposal
		CAPM promises not only to improve the efficiency with which libraries provide materials "just in time", but also to move libraries toward a "just-for-you" approach for scholars by integrating web-based access to library holdings, real-time browsing and enhanced features such as full-text search and indexes.
		The goal of the CAPM project is to develop efficient (i.e., cost-effective), real-time, enhanced browsing and search capabilities, through a Web browser interface, to off-site materials by using a combination of robotics, automated systems, software and high-speed telecommunications.
		CAPM will provide opportunities for Minolta, IBM and Ameritech to further develop their hardware and software as evidenced by their contributions.
	dkc.mse.jhu.edu /CAPM/proposal.html (4626 words)

	A Framework for Evaluating Digital Library Services
		This article provides an overview of evaluation studies for libraries, a brief introduction to the CAPM Project, a description of the theoretical background for the CAPM methodology and, finally, a discussion of the implementation of the methodology for the CAPM Project.
		The CAPM system itself will operate as follows: when a patron requests an item that is shelved off-site, a retrieval robot will automatically navigate the stacks to find the desired item and bring it to a scanning system that includes a robotic page-turner.
		The first phase of the CAPM Project, funded by the Mellon Foundation, comprised the development of a prototype retrieval robot and a concurrent evaluation of potential costs and benefits associated with CAPM implementation.
	www.dlib.org /dlib/july02/choudhury/07choudhury.html (4555 words)

	CAPM - Capital Asset Pricing Model
		The CAPM model says that this expected return that these investors would demand is equal to the rate on a risk-free security plus a risk premium.
		This is why die-hard followers of CAPM avoid stocks, and instead build portfolios merely out of low-cost index funds.
		Although the assumptions mentioned above normally are not all valid or met, CAPM remains one of the most used investments models to determine risk and return.
	www.valuebasedmanagement.net /methods_capm.html (591 words)

	Corporate finance - Wikipedia, the free encyclopedia (Site not responding. Last check: 2007-10-20)
		Managers use models such as the CAPM or the APT to estimate a discount rate appropriate for a particular project, and use the weighted average cost of capital (WACC) to reflect the financing mix selected.
		The cost of equity is also typically higher than the cost of debt (see CAPM and WACC), and so equity financing may result in an increased hurdle rate which may offset any reduction in cash flow risk.
		Management must also attempt to match the financing mix to the asset being financed as closely as possible, in terms of both timing and cash flows.
	en.wikipedia.org /wiki/Corporate_finance (2088 words)

	Comprehensive Access to Printed Materials - Workshops
		Given the implications that CAPM has for issues related to access and the extensive discussion that took place during the workshop on this issue, it is not surprising to find that participants overwhelmingly designated improved access as the most important library service that CAPM can provide (see Table 3).
		Comparing CAPM to current systems (Topic M) under the comparative valuation heading was also seen as an important way to assess the value of CAPM.
		CAPM might impact access in various ways depending on how it is implemented and utilized.
	dkc.mse.jhu.edu /CAPM/workshop.html (3597 words)

	Comprehensive Access to Printed Materials (Site not responding. Last check: 2007-10-20)
		The goal of the CAPM project is to develop efficient (i.e., cost-effective), real-time, enhanced browsing and search capabilities, through a Web browser interface, to off-site materials by using a combination of robotics, automated systems and software.
		The first phase of the CAPM Project has resulted in a prototype retrieval robot and an economic analysis of the potential costs and benefits.
		The first phase of CAPM was funded by the Mellon Foundation with additional support from Minolta Corporation and a private individual.
	dkc.jhu.edu /CAPM (210 words)

	California Academy of Preventive Medicine (CAPM), http://capm.us (Site not responding. Last check: 2007-10-20)
		CAPM is an educational and scientific society in California composed of qualified physicians who specialize in the field of preventive medicine and public health.
		CAPM produces a number of letters each year on various topics related to public health and preventive medicine.
		CAPM is registered with the California Secretary of State as a nonprofit corporation.
	home.comcast.net /~capm (718 words)

	MPPM540: Chapter 4
		In fact, the CAPM, as it is called, is the predominant model used for estimating equity risk and return.
		Because the CAPM is a theory, we must assume for argument that...
		After the CAPM, it is clear that you care about the effect of this stock on the TANGENCY portfolio.
	viking.som.yale.edu /will/finman540/classnotes/class4.html (1462 words)

	FinanceProfessor's notes on CAPM, BETA,
		The assumptions of the CAPM are important and numerous.
		When the assumptions hold, CAPM is the only measure of risk that is needed to determine the expected return of an asset.
		A bigger problem to CAPM advocate was voiced by Roll (1976) who claimed that the market portfolio was unmeasurable and thus we could never truly test CAPM.
	www.financeprofessor.com /488/notes/capm.htm (814 words)

	Financial Concepts
		The capital asset pricing model (CAPM) describes the relationship between risk and expected return, and it serves as a model for the pricing of risky securities.
		CAPM says that the expected return of a security or a portfolio equals the rate on a risk-free security plus a risk premium.
		What CAPM tells us is that Joe's Oyster Bar has a required rate of return of 18.3%.
	www.investopedia.com /university/concepts/concepts8.asp (390 words)

	PMI Mass Bay Chapter e-Newsletter: Important Changes to the CAPM Certification
		After this date, the existing CAPM examination will no longer be offered and candidates will be able to test when the revised CAPM exam is released on 31 December 2004.
		Candidates who are interested in the CAPM, but they have not yet applied, should be instructed that they have until Friday, 29 October 2004 to apply for the CAPM under the existing eligibility requirements.
		CAPM certificants will need to retest at the close of this five year period in order to maintain their credential.
	www.imakenews.com /pmimassbay/e_article000318780.cfm?x=b11,0,w (734 words)

	Capital Asset Pricing Model - CAPM
		The general idea behind CAPM is that investors need to be compensated in two ways: time value of money and risk.
		This is calculated by taking a risk measure (beta) which compares the returns of the asset to the market over a period of time and compares it to the market premium (Rm-rf).
		Using the CAPM model and the following assumptions, we can compute the expected return of a stock: if the risk-free rate is 3%, the beta (risk measure) of the stock is 2, and the expected market return over the period is 10%, then the stock is expected to return 17% (3%+2(10%-3%)).
	www.investopedia.com /terms/c/capm.asp (374 words)

	Stocks & Mutual Funds
		CAPM Tutor lets you combine important results from the three major periods of investment innovation that have taken place this century.
		CAPM Tutor is a unique investment tool that reflects these broad trends in investment analysis.
		As with the other Tutors CAPM Tutor lets you learn at your own pace from personal experience.
	www.ftsweb.com /newfts/capmovw.htm (300 words)

	CertMag.com PMI Announces CAPM Revision
		To be eligible for the credential, candidates are required to have either a high school diploma and 1,500 hours of project management team experience, or high school diploma and 23 contact hours of project management education.
		“The target audience for the CAPM are students who are coming out of school who have an interest in project management, individuals who are new to the project management arena and for those who want to get the PMP someday but don’t have the eligibility requirements right now,” Smith said.
		Smith added that while the CAPM previously had been viewed as a springboard to PMI’s advanced Project Management Professional (PMP) certification, this was no longer the case.
	www.certmag.com /articles/templates/cmag_nl_extra_content.asp?articleid=1047&zoneid=37 (569 words)

	The CAPM debate (Site not responding. Last check: 2007-10-20)
		Then the article develops a version of the CAPM and describes how it measures the risk of investing in particular assets.
		Included are studies that support the CAPM (Black; Black, Jensen, and Scholes; Fama and MacBeth), studies that challenge it (Banz; Fama and French), and studies that challenge those challenges (Amihud, Christensen, and Mendelson; Black; Breen and Korajczyk; Jagannathan and Wang; Kothari, Shanken, and Sloan).
		The article concludes by suggesting that, while academic debate continues, the CAPM may still be useful for those interested in the long run.
	ideas.repec.org /a/fip/fedmqr/y1995ifallp2-17.html (494 words)

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