What is CAPM?
Capital Asset Pricing Model (Sharpe, 1964; Lintner, 1965): cost of equity = risk-free rate + beta × equity risk premium.
Where you will use it: this term comes up in the Entrepreneurial Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Entrepreneurial Finance course by Devon Coombs, CPA, MBA.