The capital asset pricing model (CAPM) and the security market line (SML) are used to gauge the expected returns of securities given levels of risk.

The security market line visually represents the capital asset pricing model (CAPM). It depicts the relationship between the expected returns of an investment and the level of risk associated with ...

Investing has its risks. But there are strategies to determine an investment’s expected return, based on that risk. It’s called the Capital Asset Pricing Model (CAPM). Investors can use CAPM ...