Sentences with phrase «called capital asset pricing model»

There's this thing called the Capital Asset Pricing Model (CAPM), which is just a fancy name for a concept that mathematically illustrates the relationship between an asset's expected return and risk.

Factors have their roots in the academic literature (the oldest and most well - known model of stock returns is the so called Capital Asset Pricing Model (CAPM) by Jack Treynor in 1961).

Not exact matches

Besides his obvious creation of the Sharpe Ratio, he also contributed to a method of valuing stock options (called the binomial method), a few techniques of asset allocation optimization and perhaps most importantly was one of the creators of the capital asset pricing model.