Answer-What is the Capital Asset Pricing Model (CAPM)?

Q: Answer-What is the Capital Asset Pricing Model (CAPM)?

The Capital Asset Pricing Model CAPM is a model used to determine the cost of equity, which is often used in valuation methods such as determining the value of a companys shares.

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What is the Capital Asset Pricing Model (CAPM)?

Question

What is the Capital Asset Pricing Model

(CAPM)?

A A method of measuring super profits Correct Answer Incorrect Answer

B A model used to determine the cost of equity Correct Answer Incorrect Answer

C A model used to determine a company's break-even point Correct Answer Incorrect Answer

D A method of calculating earnings per share Correct Answer Incorrect Answer

Solution

The Capital Asset Pricing Model (CAPM) is a model used to determine the cost of equity, which is often used in valuation methods such as determining the value of a company's shares.

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