No, CAPM is a formula used to calculate the cost of equity—the rate of return a company pays to equity investors. For ...
Discover how the CAPM formula calculates expected returns based on investment risk. Understand its assumptions and learn how it guides financial decision-making.
The return on equity and its more expansive variant, the return on invested capital, measure what a company is making on the capital it has invested in business, and is a measure of business quality.
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