According to the capital--asset pricing model (CAPM), a security's expected (required) return is equal to the risk free rate plus a premium:
کیپیٹل ایسٹ پرائسنگ ماڈل کے مطابق، سیکیورٹی کی متوقع (مطلوبہ) واپسی خطرے سے پاک شرح کے علاوہ پریمیم کے برابر ہے
- equal to the security's beta
- based on the unsystematic risk of the security
- based on the total risk of the security
Explanation
The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between the expected return and risk of investing in a security.
It shows that the expected return on a security is equal to the risk-free return plus a risk premium, which is based on the beta of that security.
NA22-9-2023
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