What is Capital Asset Pricing Model? How is it related with the Efficient Market Hypothesis? How can we apply Efficient Market Hypothesis in real life? Give examples
Introduction The Capital Asset Pricing Model (CAPM) and the Efficient Market Hypothesis (EMH) are two fundamental theories in finance that help explain how assets are priced and how markets behave. CAPM provides a method to determine the expected return on an investment, while EMH explains how information is reflected in market prices. This answer covers […]