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Capital asset pricing model and Consumption-based capital asset pricing model

Shortcuts: Differences, Similarities, Jaccard Similarity Coefficient, References.

Difference between Capital asset pricing model and Consumption-based capital asset pricing model

Capital asset pricing model vs. Consumption-based capital asset pricing model

In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversified portfolio. The consumption-based capital asset pricing model (CCAPM) is used in finance and economics as an expansion of the capital asset pricing model (CAPM).

Similarities between Capital asset pricing model and Consumption-based capital asset pricing model

Capital asset pricing model and Consumption-based capital asset pricing model have 2 things in common (in Unionpedia): Expected return, Risk premium.

Expected return

The expected return (or expected gain) on a financial investment is the expected value of its return (of the profit on the investment).

Capital asset pricing model and Expected return · Consumption-based capital asset pricing model and Expected return · See more »

Risk premium

For an individual, a risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset in order to induce an individual to hold the risky asset rather than the risk-free asset.

Capital asset pricing model and Risk premium · Consumption-based capital asset pricing model and Risk premium · See more »

The list above answers the following questions

Capital asset pricing model and Consumption-based capital asset pricing model Comparison

Capital asset pricing model has 55 relations, while Consumption-based capital asset pricing model has 3. As they have in common 2, the Jaccard index is 3.45% = 2 / (55 + 3).

References

This article shows the relationship between Capital asset pricing model and Consumption-based capital asset pricing model. To access each article from which the information was extracted, please visit:

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