What Is the Capital Asset Pricing Model (CAPM)? Corporate accountants and financial analysts often use the capital asset pricing model (CAPM) in capital budgeting to estimate the cost of shareholder ...

The cost of equity formula is a financial metric that represents the return investors expect for holding a company's stock. This formula can help you evaluate whether a company's stock is generating ...

Claire Boyte-White is the lead writer for NapkinFinance.com, co-author of I Am Net Worthy, and an Investopedia contributor. Claire's expertise lies in corporate finance & accounting, mutual funds, ...

This paper highlights the complexities associated with the estimation of hurdle rates in emerging market economies and explores whether credit ratings could be used as an alternative to global CAPM ...