An Analysis of the Relationship between Risk and Expected Return: Test of the CAPM

The Capital Asset Pricing Model (CAPM) is an intriguing approach to understanding the relationship between risk and return in financial management. This model is considered one of the fundamental tools in the field of financial management. With a strong emphasis on the connection between risk and return, the CAPM provides a powerful tool for investors and financial decision-makers to determine rationality and fairness in asset pricing.In this abstract, we delve into the fundamental principles of the CAPM model, how to calculate expected asset returns, and its significance and applications in financial decision-making. Furthermore, we examine its impact on financial markets and its potential for the future. The core focus of this research is on investigating the relationship between risk and asset returns in financial markets.۱. Investigating the fundamental principles of the CAPM model.۲. Calculating expected asset returns using this model.۳. Exploring the model's utilization in financial decision-making and asset pricing.Research on the CAPM model holds great significance in financial management because this model aids in making rational financial decisions and ensuring equity in asset pricing.In this study, we employed analytical methods and theoretical studies to examine the CAPM model.Through a meticulous examination of the CAPM model and its applications, we have gained a better understanding of the relationship between risk and return in asset valuation.The CAPM model proves to be an effective tool for financial decision-making and asset pricing in financial markets.

کلیدواژه ها:

CAPM model ، financial risk ، asset returns ، rationality determination ، asset pricing ، financial markets