Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other asset within the context of its intrinsic risk. Used primarily to analyze ...

The Capital Asset Pricing Model (CAPM) says that you can get a low fixed return (like on Treasuries) or you can get a higher floating return for taking cyclical risk (like on corporate equities).

It's captured by the capital asset pricing model (CAPM), which quantifies the market risk premium – the difference between the expected return of the stock market and the risk-free rate of ...

That said, the theory behind CAPM is more complicated. The theory suggests that the cost of equity is based on the stock’s volatility and level of risk compared to the general market.

Scott Sumner has a nice post about the trade deficit. Here’s the gist: A current account balance merely reflects the difference between saving and investment; there’s no reason why it cannot ...