Sentences with phrase «asset pricing model implies»
The Capital Asset Pricing Model implies that assets with high beta should provide a higher rate of return than those with low beta.
https://thepfengineer.com/ Not exact matches
What if» scenarios - Change implied volatility, days to expiry or the underlying asset price of an option to model it in thousands of potential scenarios.
Essentially, it's claims lead to the Capital Asset Pricing Model (CAPM) which states that no portfolio will have a better risk - adjusted return than the market portfolio, and no stock will have a better risk adjusted return than that implied by the CAPM.