Asked by Taylor Fujimoto on Jun 12, 2024
Verified
The capital asset pricing model was developed by ________.
A) Kenneth French
B) Stephen Ross
C) William Sharpe
D) Eugene Fama
Capital Asset Pricing Model
A model that describes the relationship between systematic risk and expected return for assets, particularly stocks, used in finance to price risky securities.
William Sharpe
An economist who created the Sharpe Ratio, a measure to calculate risk-adjusted return.
- Acquire knowledge on the foundational concept and constituents of the Capital Asset Pricing Model (CAPM).
Verified Answer
PR
Property Rating . PKJun 17, 2024
Final Answer :
C
Explanation :
The Capital Asset Pricing Model (CAPM) was developed by William Sharpe. It is a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.
Learning Objectives
- Acquire knowledge on the foundational concept and constituents of the Capital Asset Pricing Model (CAPM).