What does D-CAPM mean in INVESTMENTS


The Downside Capital Asset Pricing Model (D-CAPM) is a financial tool used by investors and fund managers to determine the cost of capital for an investment. It uses statistical techniques to analyze the potential risks associated with an investment and assign a correlation coefficient that serves as an indicator of the cost of capital relative to the expected return. The D-CAPM utilizes a variety of factors, including market risk and liquidity preferences, along with downside volatility in order to create a more accurate prediction than traditional models such as Sharpe ratio or CAPM.

D-CAPM

D-CAPM meaning in Investments in Business

D-CAPM mostly used in an acronym Investments in Category Business that means Downside Capital Asset Pricing Model

Shorthand: D-CAPM,
Full Form: Downside Capital Asset Pricing Model

For more information of "Downside Capital Asset Pricing Model", see the section below.

» Business » Investments

Essential Questions and Answers on Downside Capital Asset Pricing Model in "BUSINESS»INVESTMENTS"

Final Words:
The Downside Capital Asset Pricing Model (D-CAPM) is a valuable financial analysis approach which can provide investors with vital insights into predicting expected returns on investments comparatively accurately while taking into consideration both upside and downside risks associated with them in order for improved decision making regarding allocation of funds strategically towards profitable opportunities in the markets.

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