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lord [1]
3 years ago
10

"in the capm, what does the parameter beta measure?"

Computers and Technology
1 answer:
dezoksy [38]3 years ago
8 0
CAPM stands for Capital Asset Pricing Model, which is used in the pricing of risky securities.
<span>The CAPM model describes the relationship between expected return and risk of security. </span><span>
In the CAPM, the parameter beta measures the s</span>ystematic (non-diversifiable) risk.Beta compares the returns of the asset to the market over a period of time and to the market premium.<span>
</span>
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