Explore the capital asset pricing model's (CAPM) insights on risk and return, and its strengths and weaknesses to empower your investment choices.

We often hear the word beta in the context of “beta test”. It’s a way of testing something (e.g. a software program) in a real-world situation to iron out any glitches before rolling it out to the ...

The most common metric used to quantify a stock’s market risk is Beta—a measure of a security’s volatility compared to the overall market (usually the S&P 500). However, the Beta you typically see ...

This article originally appeared in the fall 2019 issue of Morningstar Magazine. To learn more about Morningstar Magazine, please visit our corporate website. The Capital Asset Pricing Model is one of ...