Abstract
The Capital Asset Pricing Model (CAPM) has been a cornerstone of modern finance theory since its introduction by William Sharpe in the 1960s. This research article explores the application of the CAPM in the field of asset management. Besides, the CAPM provides a framework for understanding the relationship between risk and return, aiding asset managers in making informed investment decisions. This article discusses the key components of the CAPM, its limitations, and its practical implications in portfolio construction, risk assessment, and performance evaluation. Through an analysis of empirical studies, it becomes evident that while the CAPM serves as a valuable tool in asset management, its assumptions and constraints must be carefully considered. As the financial landscape continues to evolve, the CAPM remains relevant in guiding asset management strategies.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
