The capital asset pricing model (CAPM) relates the risk return trade-off of individual assets to market returns so that a security has a risk-free rate of return and a premium for risk. Explain in detail the components of CAPM
The capital asset pricing model (CAPM) relates the risk return trade-off of individual assets to market returns so that a security has a risk-free rate of return and a premium for risk. • Explain in detail the components of CAPM. • Be sure to include the formula and an explanation of beta.