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Preferred term

capital asset pricing model  

Definition

  • The capital asset pricing model, developed by William F. Sharpe and John Lintner in the middle 1960s, is the theoretical relationship between the required rate of return on an investment and the investment's risk. The required rate of return on an investment is the rate of return that investors require to compensate them for the risk of undertaking the investment. [Source: Encyclopedia of Health Care Management; Capital Asset Pricing Model]

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https://concepts.sagepub.com/social-science/concept/capital_asset_pricing_model

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