The capital asset pricing model is a theoretical model that compares risk and return. CAPM (pronounced as cap "m") is used to calculate an appropriate discount or capitalization rate, which is then used in the capitalized cash flow or discounted cash flow valuation methods. View Full Term
Trending Terms
Divestopedia Terms
Connect with us
Subscribe To Our Newsletter
By clicking sign up, you agree to receive emails from Divestopedia and agree to our Terms of Use and Privacy Policy.