The CAPM was developed in the early 1960s by William Sharpe (1964), Jack Treynor (1962), John Lintner (1965a, b) and Jan Mossin (1966). The CAPM is based on the idea that not all risks should affect asset prices.

What was Apple's CAPM model?

He has been a contributor to Investopedia since 2014. Capital Asset Pricing Model (CAPM) is a model to estimate the expected return of an asset based solely on the systematic risk of the asset return. … Let’s assume that it is possible to apply the CAPM to estimate the expected return on the common stock of Apple (AAPL).

What is the main logic of CAPM?

The capital asset pricing model (CAPM) is the formula for calculating the rate of return you should accept in a risky asset before investing. The higher the risk, the more the asset has to pay out before it becomes a rational investment.