Advantages
of Capital Asset Pricing
Advantages of risk & reward, cost of capital calculation,
Advantages of risk & reward, cost of capital calculation,
1. Risk & Rearward Relationship
CAPM beautifully explain the
relationship between risk and reward. CAPM explain that why market security
claim high return (systematic risk).
2. Effective Tool of Cost of Capital
CAPM is effective tool for calculating
cost of capital.