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CAPM |
Also found in: Financial, Wikipedia, Hutchinson | 0.01 sec. |
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The most commonly accepted method in finance is the capital asset pricing model (CAPM). Beginning with the 2006 price setting, the Board will use only a capital asset pricing model (CAPM) to determine a return on equity (ROE) that reflects the return earned by private-sector service providers. The capital asset pricing model (CAPM), first introduced by Sharpe (1964) and Lintner (1966), has made a profound impact on the way investors understand the relationship between price and risk of capital assets. |
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