Publication Details
Issue: Vol 2, No 10 (2025)
Pages: 76-81
ISSN: 2997-9404

Abstract

This article analyzes the mechanisms for determining profitability within the framework of the Capital Asset Pricing Model (CAPM) and assesses the prospects for its future application. The study examines the theoretical foundations of the model, the fundamental principles that determine the relationship between risk and expected return, and the possibilities of applying CAPM against the background of changing market conditions. It also analyzes the practical significance of the model in the process of making investment decisions, the formation of a market portfolio, the accuracy of the beta indicator, and the effectiveness of these indicators in forecasting asset profitability.

Keywords
CAPM profitability asset pricing