Vol: 7, Issue: 4 2017

Page: 018-029

CAPM Modeling: Risk Estimation and Mitigation Analysis

Rahul Garg

The capital asset pricing model (CAPM) is a model that portrays the connection between expected return and danger of a security. It demonstrates that the arrival on a security is equivalent to the hazard free return in addition to a hazard premium, which depends on the BETA of that security. The following is a delineation of the CAPM idea.