Linked from

The 13 pages that link to Capital asset pricing model, each with the reason it gives.

• Corporate financeRelated: It offers one method for estimating the return shareholders require.

• Risk aversionBroader topic: It connects investors' risk-bearing preferences to the market compensation for systematic risk.

• Efficient-market hypothesisRelated: Tests of market efficiency often use it to distinguish skill from compensation for risk.

• Cost of capitalRelated: It is a common method for estimating the cost of equity.

• Modern portfolio theoryBroader topic: The model translates portfolio optimization into a prediction about expected asset returns.

• PriceBroader topic: It estimates the return investors require as compensation for bearing risk.

• Harry MarkowitzRelated: It builds on portfolio theory to explain the relation between market risk and expected return.

• Mean–variance analysisRelated: It builds on portfolio choice to derive a relation between expected return and market risk.

• Financial economicsBroader topic: It gives a compact benchmark for expected returns in diversified markets.

• Eugene FamaRelated: Fama tested and developed implications of this central benchmark for expected returns.

• Arbitrage pricing theoryCompared with: CAPM uses one market factor, while APT permits several systematic factors.

• Robert C. MertonCompared with: Unlike this static benchmark, Merton’s intertemporal models account for changing opportunities and future decisions.

• William F. SharpeRelated: Sharpe’s best-known theoretical contribution connects market risk to expected returns.