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Real Estate Glossary

Capital Asset Pricing Model (CAPM)

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Written by Luis Escobar

This statistical model puts into detail the relationship between risk and expected return. The CAPM is used to aid in the costs of risky securities. It can also help in generating anticipated returns for assets given the risk of those assets and the cost of capital.

This statistical model puts into detail the relationship between risk and expected return. The CAPM is used to aid in the costs of risky securities. It can also help in generating anticipated returns for assets given the risk of those assets and the cost of capital.

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Luis Escobar

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