The capital asset pricing model relates the risk-return trade-offs of individual assets to market returns.

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The capital asset pricing model (CAPM) is a financial model that relates the expected return on an asset to the systematic risk (beta) of the asset and the expected market return. The CAPM is widely used in finance and investing to analyze and evaluate the risk-return trade-offs of individual assets in relation to market returns.

The Capital Asset Pricing Model Relates the Risk-Return Trade-Offs of Individual