In other words, the more risk you take on, the higher returns you hope to earn. The capital asset pricing model (CAPM) helps investors understand the returns they can expect given the level of ...

Mullins, David W., Jr. "Financial Leverage, the Capital Asset Pricing Model and the Cost of Equity Capital." Harvard Business School Background Note 280-100, March 1980. (Revised October 1980.) ...

Find out how market risk directly affects cost of capital, including how to use the capital asset pricing model (CAPM) to estimate cost of equity.

Investors can use the sales comparison approach, the capital asset pricing model, the income approach, the gross rent multiplier approach, and the cost approach to determine property values.

Merton, Robert C. "A Dynamic General Equilibrium Model of the Asset Market and Its Application to the Pricing of the Capital Structure of the Firm." Sloan School of Management Working Paper, No.