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The CAPM Estimates the Required Rate of Return on a Stock

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The CAPM estimates the required rate of return on a stock held as part of a well diversified portfolio.


Definitions:

Family Therapy

A form of psychotherapy that involves treating family relationships to foster healing and growth.

Client-Centered Therapy

A form of psychotherapy developed by Carl Rogers, focusing on the individual's capacity for self-direction and understanding of one's own feelings.

Beck's Cognitive Therapy

A form of therapy developed by Aaron T. Beck that aims to change negative thought patterns to improve mood and behavior.

Integrative Therapy

A therapeutic approach combining multiple theories and techniques from different therapies to fit the needs of the individual client.

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