Economy, asked by Darshan9969, 1 year ago

In the capm, what does the parameter beta measure?

Answers

Answered by Akankshitha
1

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Explanation:

Understanding the Capital Asset Pricing Model (CAPM)

Understanding the Capital Asset Pricing Model (CAPM)The beta of a potential investment is a measure of how much risk the investment will add to a portfolio that looks like the market. ... The risk-free rate is then added to the product of the stock's beta and the market risk premium.

Answered by Aaronzawesome
0

Answer:

Understanding the Capital Asset Pricing Model (CAPM)

The beta of a potential investment is ameasure of how much risk the investment will add to a portfolio that looks like the market. ... The risk-free rateis then added to the product of the stock's beta and the market risk premium.

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