International Capital Asset Pricing Model (CAPM)

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Definition of 'International Capital Asset Pricing Model (CAPM)'

A financial model that extends the concept of the capital asset pricing model (CAPM) to international investments. The standard CAPM pricing model is used to help determine the return investors require for a given level of risk. When looking at investments in an international setting, the international version of the CAPM model is used to incorporate foreign exchange risks (typically with the addition of a foreign currency risk premium) when dealing with several currencies.

Investopedia Says

Investopedia explains 'International Capital Asset Pricing Model (CAPM)'

CAPM is a method for calculating anticipated investment risks and returns. The model was developed by economist and Nobel Memorial Prize winner William Sharpe. It says that the return on an investment should equal its cost of capital and that the only way to earn a higher return is by taking on more risk. Investors can use CAPM to evaluate the attractiveness of potential investments. There are several different versions of CAPM, of which international CAPM is just one.
Search results for

'International Capital Asset Pricing Model (CAPM)'

  • CFA Level 1 Study Guide - Portfolio Management - The Capital Asset ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/capm-capital-asset-pricing-model.asp
    ... Effects of the Institutionalization of capital markets; 12.9 ... Bonds; 14.20 Duration;
    14.21 International Bonds; 14.22 ... Types of Bonds; 14.27 Asset-Backed Securities ...

  • Series 7 Study Guide - Portfolio Management - Capital Asset ...

    http://www.investopedia.com/exam-guide/series-7/portfolio-management/capital-asset-pricing-model.asp
    ... 9.21 The Federal Reserve Board; 9.22 International Economic Factors. 10. ... leads into
    the subject of the capital asset pricing model (CAPM), sometimes called ...

  • CFA Level 1 Study Guide - Global Economic Analysis - International ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/international-finance.asp
    ... Effects of the Institutionalization of capital markets; 12.9 ... Bonds; 14.20 Duration;
    14.21 International Bonds; 14.22 ... Types of Bonds; 14.27 Asset-Backed Securities ...

  • CFA Level 1 Study Guide - Fixed Income Investments - International ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/international-bonds.asp
    ... Effects of the Institutionalization of capital markets; 12.9 ... Bonds; 14.20 Duration;
    14.21 International Bonds; 14.22 ... Types of Bonds; 14.27 Asset-Backed Securities ...

  • CFA Level 1 Study Guide - Portfolio Management - The Capital ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/capital-market-line.asp
    ... Effects of the Institutionalization of capital markets; 12.9 ... Bonds; 14.20 Duration;
    14.21 International Bonds; 14.22 ... Types of Bonds; 14.27 Asset-Backed Securities ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Pricing Bonds ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/pricing-bonds.asp
    ... Effects of the Institutionalization of capital markets; 12.9 ... Bonds; 14.20 Duration;
    14.21 International Bonds; 14.22 ... Types of Bonds; 14.27 Asset-Backed Securities ...

  • CFA Level 1 Study Guide - Corporate Finance - Effects of Debt on ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/debt-effects-capital-structure.asp
    ... Effects of the Institutionalization of capital markets; 12.9 ... Bonds; 14.20 Duration;
    14.21 International Bonds; 14.22 ... Types of Bonds; 14.27 Asset-Backed Securities ...

  • Achieving Better Returns In Your Portfolio

    http://www.investopedia.com/articles/05/021705.asp
    ... known as the capital asset pricing model (CAPM), implies ... Value.) Market Cycles Asset
    classes have ... correlations (eg, bonds, international stocks, international ...

  • Nobel Winners Are Economic Prizes

    http://www.investopedia.com/articles/08/nobel-prize.asp
    ... to a wide array of financial mechanisms such as international trade, elections ... to
    create the backbone of the capital asset pricing model (CAPM), which is ...

  • CFA Level 1 Study Guide - Corporate Finance - Cost of Retained ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/cost-of-retained-earnings.asp
    ... Effects of the Institutionalization of capital markets; 12.9 ... Bonds; 14.20 Duration;
    14.21 International Bonds; 14.22 ... Types of Bonds; 14.27 Asset-Backed Securities ...

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